- July 2009
- Current Events
- Travel Tips
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- International
- Government/Legislation
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- Supplier Spotlight
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Supplier News
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Northwest and Delta loyalty programs move toward integration
Following the merger, Delta is in the process of fully integrating Northwest into its operations. Currently, the Delta and Northwest frequent flier programs are still separate, but later this year the SkyMiles and WorldPerks programs will be merged into one loyalty program. Below are some key details to keep in mind as this process takes place.
Profile: Ensure profile information is up to date with Delta SkyMiles at: www.delta.com/profile/index.jsp and/or Northwest at: www.nwa.com/SSO-RP/MyNWAPrefs.
Register: Register to receive emails from the airlines during the transition to ensure receipt of the most up-to-date information.
Link accounts and transfer miles: Travelers who have both a SkyMiles and WorldPerks account can now link accounts and transfer miles between accounts. Travelers can visit www.nwa.com/worldperks/acctlink/ to consolidate account history and balances and use benefits of both programs before they’re fully integrated.
WorldPerks credit card deactivation: Effective no later than July 17, 2009, WorldPerks credit card holders will no longer earn WorldPerks and the card will no longer be active. Travelers who would like to earn Delta SkyMiles from credit card purchases must apply for a Delta SkyMiles credit card.
In addition, the latest merger information can be found on the Delta and Northwest Web sites: www.delta.com and www.nwa.com.
Sources: deltaskymilescard.com, nwa.com, minnesota.publicradio.org, Carlson Wagonlit Travel
United moves to shift credit card costs to agencies
CWT has learned that effective July 20, United Airlines is requiring an unknown number of travel agencies to process credit card transactions using their own merchant accounts and thereby absorbing United’s merchant fees.
CWT clients are advised that this initiative does not apply to CWT or its clients at this time. CWT will continue to monitor this situation and work with all airlines to ensure the best interests of mutual clients.
Source: Carlson Wagonlit Travel
Airlines respond to lower demand
According to the International Air Transport Association (IATA), the world’s airlines are projecting a collective loss this year of USD $9 billion. In the first quarter alone, IATA reported 50 airlines lost more than USD $3 billion. The projected loss for 2009 reflects a continued slowdown in air travel and cargo demand.
According to IATA, the hardest hit region will continue to be Asia-Pacific due to the sharp slowdown in Japan, China, and India. Carrier losses in the region are expected to hit USD $3.3 billion, worse than the previous forecast of USD $1.7 billion, but better than the USD $3.9 billion losses last year. Although losses in North America are expected to hit USD $1 billion, they reached USD $5.1 billion in 2008. Despite strong traffic, Middle Eastern carriers are expected to see losses deepen to USD $1.5 billion as the region's intercontinental hubs are vulnerable to the recession in Europe and Asia. European airlines are expected to lose USD $1.8 billion this year, Latin American carriers USD $900 million, and African airlines USD $500 million.
Capacity cuts are one approach airlines have taken (and continue to take) in an effort to control costs. Considering that fewer seats may be available on certain routes, travelers are encouraged to book in advance to secure space on their desired flights.
Baggage fees and other a-la-carte fees also remain in place at many airlines in an effort to boost revenue. Travelers should be aware of their corporate policies regarding payment methods and expense reimbursement for such services.
Sources: USA Today, IATA
