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E L L I O T T ' S TRAVEL NOTES
Travel news, opinion and analysis

August 2, 2004

Looks Like Another Airline Bailout
With the possibility of a $5 billion pension default by United Airlines, there's reportedly a possibility of more U.S. airline defaults totaling $110 billion. Operating in bankruptcy, United is trying to attract investors it needs to survive and last month the airline said that it would no longer contribute to its pension plans. United seems intent on shedding some or all of its $13 billion in pension obligations as the only way to emerge from bankruptcy proceedings. UPI | Posted 6:30 a.m.
• Remember the Savings and Loan Bailout? (NY Times)
• United Airlines Lobs a Stink Bomb (Herald)

Oh, great. Not another airline bailout.

Computer Glitch Grounds Flights
American Airlines and U.S. Airways promised to be back on schedule today after a computer glitch Sunday delayed hundreds of flights for up to two hours. American, which operates a hub at O'Hare Airport, said it grounded 150 flights between 6 a.m. and 8 a.m., causing flights to run an hour or two late throughout the day. No flights were canceled as a result of the computer problem, said American spokeswoman Mary Frances Fagan. It was the first time the world's largest airline had grounded flights since Sept. 11, 2001. American operates 2,400 flights per day. Sun Times | Posted 6:35 a.m.

Hotel Bed Wars Pick Up
Call it the battle of the beds. Figuring that business travelers spend most of their time in hotels asleep, both Westin and Marriott have been pushing plush beds in their ads. Westin says its campaign has been so successful that parent Starwood is putting similar Sweet Sleeper Beds in every one of its 200 Sheraton Hotels by the end of the year. And both hotels sell fully loaded beds—with pillows, sheets and a comforter—to enamored customers (now that's room service!). We took Westin's Heavenly Bed and the Marriott Bed for a test rest at each chain's location in New York City's Times Square. Fortune | Posted 6:45 a.m.

Frequent Flier Seats Easy to Come By - Travelers cashing in frequent-flier miles for free tickets have nearly a 3-in-4 chance of getting the trip they want when they want it, contrary to the perception that airlines have tightened up on the availability of free award seats. In what might be a first, InsideFlyer magazine tested the common complaint about hard-to-book frequent-flier awards. USA Today | Posted 7 a.m.

US Airways Travelers Abandon Airline - Lisa Fischetti, a principal in the Pittsburgh public relations firm Veritaspr, recently cleaned out her US Airways frequent-flier account. She redeemed about 120,000 points for two round-trip tickets to Europe for her parents and two to Aruba for herself and her husband. "I didn't want to save and save and end up with nothing," Fischetti said. She isn't the only one worried about what's to become of US Airways, the nation's seventh largest airline. Tribune-Review | Posted 7:05 a.m.

Who Do You Think We Are, Hooters Air? - A couple returning home from a Costa Rican vacation was ejected from an American Airlines flight because the man was wearing a T-shirt depicting a bare breast. Oscar Arela and his girlfriend were removed from Flight 952 on Saturday after he refused to change the shirt or turn it inside out at Miami International Airport. AP | Posted 7 a.m.

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• Off the Record... if you've been following Delta's latest outsourcing controversy, you'll probably be relieved to hear that it won't cost extra to talk to a customer service rep stateside. (Attention, Dell. You might want to try this, too.) But you know that saying about the airlines charging you for the air you breathe, if they could. Has a little more of a ring of truth to it now, doesn't it? Posted 7:10 a.m. | Send us your comments.

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