WASHINGTON, July 20 /PRNewswire-USNewswire/ — The Air Transport Association of America (ATA), the industry trade organization for the leading U.S. airlines, today reported that passenger revenue[1] fell 26 percent in June 2009 versus the same month in 2008 – the eighth consecutive month in which passenger revenue has fallen from the prior year.

The number of passengers traveling on U.S. airlines[1] in June fell 6.5 percent while the average price to fly one mile fell 20.7 percent, a sharp decline surpassing even those witnessed during the 2001 recession and post-9/11 terrorist attacks.

Revenue declines extended beyond the mainland United States to the trans-Atlantic, trans-Pacific and Latin markets.

Compounding the softening demand for passenger travel, U.S. airlines[2] saw cargo traffic – as measured in revenue ton miles – decline 20 percent year over year in May 2009, marking the 10th consecutive month of declining cargo traffic. Notably, cargo traffic in the Pacific region fell 26 percent.

June 2009 cargo data is not yet available.

The latest results continue to reflect the weak global economy and the lingering impact of the H1N1 (swine) influenza outbreak.

"Despite extreme price discounting, June data reflect ongoing weakness in demand for air travel.

The airline industry remains fragile as this country continues to suffer from the worst recession since the 1930s," said ATA President and CEO James C. May.

Annually, commercial aviation helps drive $1.1 trillion in U.S. economic activity and more than 10 million U.S. jobs.

On a daily basis, U.S. airlines operate nearly 30,000 flights in 77 countries, using more than 6,000 aircraft to carry an average of two million passengers and 50,000 tons of cargo.

ATA airline members and their affiliates transport more than 90 percent of all U.S. airline passenger and cargo traffic.

For additional industry information, visit www.airlines.org.

[1] Based on data reported to ATA by Alaska, American, Continental (incl. Micronesia), Delta (incl. NWA), JetBlue, United and US Airways; also includes data for Air Midwest, Air Wisconsin, Allegheny, American Eagle, Atlantic Coast, Atlantic Southeast, Chautauqua, Comair, Continental Express, Executive, Freedom, Horizon, Mesa, Mesaba, MidAtlantic, Piedmont, Pinnacle, PSA, Shuttle America, SkyWest and Trans States.

[2] Based on data reported to ATA by Aloha, Alaska, American, Continental, Delta (incl. NWA), FedEx, Hawaiian, JetBlue, Midwest, Southwest, United, UPS and US Airways.

SOURCE Air Transport Association

Starting today, anyone with a demonstrable business need can visit www.ba.com/facetoface for the chance to win a free flight on one of three wide-bodied airplanes that will depart this fall from New York, Los Angeles and Chicago headed for business and networking opportunities overseas.

Simon Talling-Smith, Executive Vice President Americas for British Airways said: "Face-to-face interaction fuels business. In these challenging times, you can keep relationships alive through faceless conference calls or live video conferences, but chances are they won't grow much without some quality face time. These human connections matter, and it is from those connections that business flows. Everyone must do their part to get business moving again, and the Face-to-Face campaign will connect U.S.-based entrepreneurs with new opportunities that would not have been realized if people did not make the trip."

British Airways commissioned a survey of Harvard Business Review readers to gauge perceptions within the international business community about the importance of face-to-face meetings. In a time when business travel has been greatly reduced, the study aimed to uncover the impact that such restrictions have had on business growth and building long-term relationships. In preliminary results from a survey of more than 2,200 Harvard Business Review subscribers, 95 percent said they believe that face-to-face meetings are key to success in building long-term relationships, and 87 percent agree face-to-face meetings are essential for "sealing the deal." More than half of those surveyed said recent restrictions on business travel have hurt their business.

Angelia Herrin, Research Editor, Harvard Business Review Group said: "Our survey revealed that what most business people really want is solid human connections. Readers tell us face-to-face interaction helps build teams, drive consensus and ultimately yield profit. Technology serves as an effective supplement, but the handshakes and eye contact of in-person meetings cement long-term relationships."

Chance to Win a Free Trip to Conduct Business Anywhere in the World*

"Face-to-Face" by British Airways invites U.S. business people to make their case for an unmet business travel need and win free travel to London, or anywhere in the world that British Airways flies, to attend a crucial meeting. Whether it's a sit-down appointment with a potential client or a check-in on an office that has not been visited because of budget cuts, the campaign is designed to help budget-conscious businesses get where they need to go, physically and financially.

Business people interested in entering the competition may visit www.ba.com/facetoface to complete the entry form including a 500-word explanation of why their business merits a trip overseas. Entries will be reviewed by a group of British Airways executives and its communications and business partners. An advisory panel of US and UK business leaders will provide counsel on competition criteria and winner selection. Entries will be accepted until midnight (EDT) July 31, and winners will be notified by mid-August.

The advisory panel includes: Eric Baron, Founder & CEO, The Baron Group; Sir Alan Collins, British Consul General, New York; Brad Gelfond, SVP, Brand & Content Partnerships, Warner Bros. Music; Reid Hoffman, Founder & Executive Chairman, LinkedIn; Robert Lipp, Senior Advisor, Brysam Global Partners (Former Chairman, JPMorganChase); Stephen J.O. Maltby, Partner, Gibney, Anthony & Flaherty, LLP; Frank Radice, President & CMO, National Academy of Television Arts & Sciences; Michael Reed, VP, Strategy & Institutional Diversity, Williams College; Charles Seely, Advisor to UK Government, Global Entrepreneurs Programme; and Eric Van der Kleij, Senior Advisor, Global Entrepreneur Programme, UKTI.

Several international business and entrepreneurial organizations are also partnering with British Airways on this program and will conduct their own competitions to select members to be awarded travel on these flights.

Networking Events at 38,000 Feet . . . and More Opportunities on the Ground

Competition winners not only receive a trip overseas, but they also will have the opportunity to connect with other business people traveling on special British Airways flights and forge relationships that can further their own business objectives. Flights are scheduled from JFK International Airport on September 15, Los Angeles International Airport on October 13 and Chicago O'Hare International Airport on November 17. With more than 1,000 passengers from all over the U.S. on board these planes, it is only fitting to call this experience a networking, or salon, event at 38,000 feet.

Events surrounding the departure and arrival of these special flights will also serve to underscore the importance of relationships in business. Business leaders and senior government officials in New York, Los Angeles, Chicago and London will address winners at "power networking" events.

More information on additional phases of the "Face-to-Face" program will be revealed in the coming weeks.

* Passengers will have the right to return to the terminal after three-hours on the tarmac if the pilot determines this can be done safely.

* While on the tarmac, airlines will be required to provide food, potable water, working restrooms, and reasonable cabin temperature and ventilation.

"This is a major victory for airline passengers," said Kate Hanni, whose organization has been working for over two years for airline passengers' bill of rights with a three hour minimum.

"But the war isn't won yet." Airline lobbyists are already on the Hill in force fighting against these provisions.

If and when these rights are eventually passed by the full Senate, House leaders will still have their say in conference. Despite intense focus over the last two years to persuade key House leaders of the need to impose time limits, the House chose to leave that option to the airlines.

"This would have led to mass consumer confusion – one airline could have a limit of 5 hours, and another airline could have set a limit of 10 hours," says Ms. Hanni.

"Our coalition and airline passengers everywhere wish to thank the members and leadership of the Senate Commerce Committee for this important legislation," said Ms. Hanni.

Chief proponents of the three-hour limit were Senator Barbara Boxer (D-CA) and Senator Olympia Snowe (R-ME). Chairman Rockefeller (D-WV) introduced the bill on behalf of Ranking Member Kay Bailey Hutchison (R-TX), and the leadership of the Aviation Operations, Safety and Security Subcommittee, Chairman Byron L. Dorgan (D-ND) and Ranking Member Jim DeMint (R-SC).

Other airline consumer-friendly provisions were championed by Senator Frank Lautenberg (D-NJ) and Senator John Thune (R-SD). "It looks to our coalition as though this was a bipartisan, group effort. We're so pleased that this committee is able to work together and focus on the interests of the flying public," said Ms. Hanni.

FlyersRights.org has over 25,000 members and is the largest non-profit airline passengers' rights coalition. For more information, contact Kate Hanni directly at 707-337-0328 or Kate@flyersrights.org.

The new service is being installed on Continental's entire fleet of more than 200 Boeing 737 Next-Generation aircraft, including the 737-700, -800, -900, -900ER and the Boeing 757-300. Continental's new system includes in-seat power ports that do not require the use of an adapter. The company expects to complete installation by the end of 2010.

"Our customers are enjoying DIRECTV(R)," said Jim Compton, Continental's executive vice president of marketing. "Even in these tough economic times, we continue to invest in product features that customers value."

The channel lineup includes CBS, NBC, Fox, USA Network, Discovery Channel, A&E, CNN, ESPN, Animal Planet, The History Channel, Food Network and many other popular channels. In addition to live television, the entertainment system provides previously recorded premium movies, sitcoms, dramas, with a moving map to be added later.

Continental's first-class customers receive access to the system free-of-charge. The fee for economy-class customers is $6 per flight.

Continental Airlines is the world's fifth largest airline. Continental, together with Continental Express and Continental Connection, has more than 2,750 daily departures throughout the Americas, Europe and Asia, serving 133 domestic and 132 international destinations. More than 750 additional points are served via current alliance partners. With more than 43,000 employees, Continental has hubs serving New York, Houston, Cleveland and Guam, and together with its regional partners, carries approximately 67 million passengers per year.

Celebrating its 75th anniversary this year, Continental consistently earns awards and critical acclaim for both its operation and its corporate culture. For the sixth consecutive year, FORTUNE magazine named Continental the No. 1 World's Most Admired Airline on its 2009 list of World's Most Admired Companies. For more company information, go to continental.com.

On the brink of a decade of stagnant growth, little to no profitability, bankruptcy pandemics, highly ineffective mergers, and some of the poorest- ranked customer service, what is next for legacy airlines? How do they weather this never-ending storm?

From the time I was a child, I was intrigued by the over-complexity associated with the airline industry — the routes, planes, bags, people, hubs and spokes; it was all fascinating. What I didn't know was that this fascination would become not only my profession but also my inspiration. As an entrepreneur in the travel trade, self-proclaimed airline junkie, and global MBA student; I have firsthand knowledge about the decisions inside the U.S. airline market and their associated repercussions. I believe that I have the skills and abilities to be part of the solution to the many problems plaguing the industry; I am ready for the challenge!

For legacy carriers to compete in the modern airline industry they must employ a level of innovation never used before. Airlines must embrace the potential of the incoming workforce. We are young, willing to take chances and push the envelope on what being an airline means. It's not about cutting costs and charging for bags, drinks or phone reservations; it's about creating something of far greater value and charging for it. Competing on price alone is not enough. You have to be outstanding…bring something else to the table.

Legacy airlines are learning they cannot successfully compete with financially superior LCCs, one of the most complex problems plaguing the industry today.

America West and U.S. Airways merged in 2005, becoming one of the lowest-ranked carriers in the areas of customer service, baggage handling and profitability. The consolidation of two unrelated airlines, with their conflicting cost structures, cultures, histories and operational procedures, just didn't work; full synergy may never be achieved. The outcome of this merger halted talk of further consolidations, leaving no other avenue but bankruptcy for United (2002), Northwest (2005), and Delta (2005).

In 2008, the fuel for consolidation was ignited once more when Delta was given the green light to merge with Northwest, creating the world's largest airline. Officially united in October 2008, Delta/Northwest learned the most valuable lesson from their predecessors…Nothing happens without the labor unions. If the new Delta achieves synergies and increases efficiency, we may see a trend toward further consolidation. Conversely, there is a lack of beneficial merger partners and the most recent opinions coming from the new administration regarding Continental's intent to join the Star Alliance are less than encouraging.

Large legacy carriers are riddled with inefficiency, the slow-moving pandemic that cripples financial position, operational flexibility and innovation over time. The airline industry has to face these problems full force, find the people who share in a passion for innovation and change, the people who will do the right thing, and give them the power to do it. It's not going to be a quick or painless change, but if the market continues as it is now, there are rough skies ahead.

Legacy carriers have more than 50 years of experience, infrastructure and exposure; today's challenges will require all of that experience to prevail. Airlines need a renaissance, a time to redefine their very existence. Now is the time to stop fighting a war on price that cannot be won and develop a new strategy that provides sustainable, long-term, competitive advantages.

It has been proven that younger carriers with significantly lower labor costs, newer aircraft, fewer top-level executives, flatter organization, and a generally lower cost structure have an advantage over international long-haul carriers in the domestic market. Is there a plateau at which further expansion does not have added benefit? I believe there is. The long-haul airline industry suffers from 'dis-economies' of scale: continually high unionized wages, loss of effective union rules, and aging fleets that are too inefficient to compete in a cutthroat domestic market. Profitability through specialization is key to long-term success for the legacy carriers.

Maintaining two separate cost structures is one of the only options to remain profitable and competitive in the domestic segment. Delta and United failed to do this with their LCC subsidiaries Song and TED. Both attempts failed because LCC models are radically different and management was not able to operate as such. Legacy airlines will have to either outsource their domestic needs, reaping the benefit of efficient operations or reinvent their domestic structure while still providing their signature international service.

If airlines choose to operate in the markets where they are most capable they can achieve a competitive advantage through specialization. By spinning off, developing, or acquiring LCC's, airlines will be in a position to leverage their strengths and help ensure a more efficient and effective organization in the future. With consolidation and specialization, airlines will be better positioned to service the customer, while accomplishing corporate goals and more effectively serving their stakeholders.

Positioning will only allow for the potential for future success, not solve the problems plaguing the industry. Legacy carriers must seize the opportunities presented, innovate their way through the challenges and revolutionize this antiquated industry. Tomorrow's problems cannot be solved with yesterday's solutions. The airlines that embrace change and innovation first will reap the greatest rewards. I look forward to being that catalyst for change in the coming months, and contributing the "redefinition" of the industry.

If we have learned anything from the path to destruction followed by Detroit's big three, proactive change is the only way to succeed in capital intensive, unionized legacy industries. The market will eliminate inefficiencies, those who embrace change now, and innovate ahead of the market, will succeed.

[Editor: Theresa M. Maier]

An ambitious young entrepreneur from San Antonio, Texas, Shelton Moynahan will graduate from Webster University with a globally-focused MBA in July 2009.

With its home campus in St. Louis, Webster University (www.webster.edu) is a worldwide institution committed to delivering high-quality learning experiences that transform students for global citizenship and individual excellence. Founded in 1915, Webster offers undergraduate and graduate degree programs through five schools and colleges, and a global network of more than 100 campuses. Its 20,000-plus student population represents almost 150 nationalities. The University's core values include excellence in teaching, joining theory and practice, small class sizes, and educating students to be lifelong independent learners, fully prepared to participate in an increasingly international society.

Since opening its first campus overseas in Geneva in 1978, Webster has become a recognized leader and innovator in global education, with an international presence that now includes campuses in London; Vienna; Amsterdam and Leiden, the Netherlands; Shanghai, Shenzhen and Chengdu, China; and Bangkok and Cha-am, Thailand. Webster also has educational partnerships with universities in Mexico and Japan.

Source: Webster University — Saint Louis Campus

Malév joins third city in Ukraine to oneworld network: A third city in Ukraine joins the oneworld network from today, with Malév Hungarian Airlines launching flights between its Budapest hub and Uzhhorod. It will serve the airport – which has the three-letter IATA code UDJ – with two Embraer regional jets a week. Ukraine's Kiev and Odessa are already served by oneworld airlines.

American Eagle joins three more destinations in USA to oneworld network: Three new destinations in the USA have been joined to the oneworld network by American Eagle, the regional affiliate of American Airlines, with flights to and from its Dallas/Fort Worth hub:

* Brownsville, Texas (which has the IATA three-letter code BRO), right on the Mexican border and less than half an hour away from two beautiful Gulf of Mexico beaches, which is now served by American Eagle three times a day.
* Lake Charles, Louisiana (LCH), host to more than 75 festivals a year, served twice daily.
* Montgomery, Alabama (MGM), the state capital, and steeped in history from the Civil War to Civil Rights, also served twice daily.

Japan's newest airport Mount Fuji joins oneworld network: Japan's newest airport, Mount Fuji/Shizuoka has now opened – and joined the oneworld network. The new gateway is served by Japan Airlines.

Dragonair to open flights to Guangzhou: oneworld affiliate Dragonair is to launch flights between its Hong Kong hub and Guangzhou from 14 September, joining Japan Airlines in serving the provincial capital of Guangdong and the biggest city in the fast-growing Pearl River Delta region. Dragonair will offer to double daily Airbus A320 family types on the route.

Qantas adds more Queenstown routes: Qantas is to launch flights to Queenstown from both Brisbane and Melbourne from this weekend until the end of the ski season in mid September. It already served the New Zealand destination seasonally from Sydney.

BA sets September launch for London City-New York JFK all-business flights: British Airways has confirmed that its new all-business flights between London City and New York JFK will start from 29 September. They will operate daily initially, other than Saturdays when the UK airport is closed, increasing to twice-daily from October, using the flight codes reserved for BA's supersonic Concorde operations until they were suspended in 2003 – BA001, 002, 003 and 004.

The Airbus A318s that will operate them will offer just 32 seats, which all convert to fully flat beds. It will be the first transatlantic flights by any UK airline to enable passengers to access the web in-flight. Minimum check-in time is just 15 minutes before departure. On the way to the USA, the service will make a technical halt at Shannon, to refuel and to enable passengers to clear US customs and immigration. The return flight will be non-stop.

The flights will be the first longhaul services to operate from London City, which is the closest airport to the UK capital's business centre.

Finnair and oneworld partners to consolidate at Helsinki Terminal 2: All operations by Finnair and its oneworld partners at its Helsinki hub are to consolidate in one area of the airport from 5 August, including the airline's domestic services, following the opening next month of the extension to the passenger terminal's area for longhaul and non-Schengen services.

All Finnair, Finncomm and oneworld airline operations will be concentrated at Terminal 2. This will mean that all Finnair traffic from domestic to longhaul will operate from one and the same terminal. Terminal 1, currently the domestic terminal, will be used by other airlines.

At the same time, the airport will open a new security screening area for transit passengers, which will include fast-track channels for premium customers and those with short connection times. The building extension also includes new shops and restaurants.

Work is also about to start on a new railway loop linking the airport with central Helsinki.

JAL moves Paris CDG terminals: Japan Airlines has now moved locations at Paris CDG, switching from Terminal 2F to Terminal 2E. British Airways also moved at CDG earlier this year, from Terminal 2B to Terminal 2A, which was already used by American Airlines and Cathay Pacific. Royal Jordanian remains in Terminal 2B, with the only other alliance members serving the airport, Finnair and Malév Hungarian Airlines, using the Schengen-equipped Terminal 2D.

Qantas launches on-line check-in and charges extra to book exit row seats: Qantas is the latest oneworld member airline to enable its passengers to check-in on-line via its website for all flights. On-line check-in is available from 24 to two hours before departure. Members of its Qantas Frequent Flyer loyalty programme can also select their seat on-line for international flights, from the time their booking is first make.

Economy customers seeking extra legroom can also now purchase exit row seats for international flights operated by wide-bodied aircraft, a week to a day before departure. The facility is available via the airline's telesales centers initially before going on-line later this year, for A$160 (US$127) or 20,000 Qantas Frequent Flyer points for longhaul segments, of A$80 (US$64) or 10,000 Qantas Frequent Flyer points for shorter sectors.

* For details, see http://www.qantas.com.au/info/bookings/exit-row-seats.

American completes up-grade to its Sao Paulo Admirals Club lounge: American Airlines has completed extensive renovations to its Admirals Club at Sao Paulo. The facility is now around 20 per cent bigger, with seating for more than 220 visitors. It features an upgraded, multi-functional business centre, flat panel TVs, self-serve complimentary food and beverage selections, and a children's room. It also features showers.

About oneworld: oneworld brings together some of the best and biggest names in the airline business – American Airlines, British Airways, Cathay Pacific, Finnair, Iberia, Japan Airlines, LAN, Malév Hungarian Airlines, Qantas and Royal Jordanian, and around 20 affiliates including American Eagle, Dragonair, LAN Argentina, LAN Ecuador and LAN Peru. Mexicana and its affiliate Click Mexicana will join the alliance in 2009 and Russia's S7 Airlines in 2010. Between them, these airlines:

* Serve almost 750 airports in nearly 150 countries, with some 8,500 daily departures.
* Offer nearly 550 airport lounges for premium customers.
* Carry some 330 million passengers a year.
* Employ 300,000 people.
* Operate almost 2,500 aircraft.
* Generate some US$100 billion annual revenues in total.

It is the only alliance with any airlines based in Australia, South America or Asia's Middle East.

The alliance enables its members to offer their customers more services and benefits than any airline can provide on its own. These include a broader route network, opportunities to earn and redeem frequent flyer miles and points across the combined oneworld network and more airport lounges. oneworld also offers more alliance fares than any of its competitors.

oneworld was voted the World's Leading Airline Alliance for the sixth year running in the latest (2008) World Travel Awards. It is the only winner of this award since it was introduced in 2003.

American Airlines was the first to sell flights by all its oneworld partners through its own website. Japan Airlines also already sold through its main Japanese website jal.co.jp flights operated by its oneworld partners in combination with its own services.

As one of the initiatives unveiled as part of the grouping's 10th birthday celebrations in February, oneworld committed to be the first alliance with all member airlines selling flights by all their partners via their own websites, with the complete roll-out across all carriers scheduled by the end of this year. This responds to a clear preference among frequent flyers for on-line and self-service options.

oneworld Commercial Director Filip Lemmens said: "One of the key benefits of airline alliances is that they make it easier for people to reach many more places around the world than any individual carrier serves. Yet the rapid move towards internet sales in recent years has not built in that key alliance benefit.

"oneworld is the first to be setting that right. All oneworld carriers will in the future enable their customers to buy on-line through their own airline website flights to destinations not just served by their own airline but by their alliance partners too. So travelling to any destination on the oneworld map will become a great deal easier."

No other global alliance sells flights operated by all its member airlines through the websites of all its member airlines.

In the first phase of Finnair's roll out, reservations via finnair.com can be made on flights operated by all other oneworld members and affiliates only in connection with a Finnair flight. Reservations on oneworld partners can at this stage only be made in combination with an intercontinental Finnair flight. This expands the number of destinations Finnair offers on-line significantly and increases the potential number of city pairs available up to 160,000.

* While all oneworld member airlines now operate aircraft decorated in a standard oneworld livery, Finnair has taken this approach one step further by decorating one of the buses it operates between Helsinki airport and the city centre in a special alliance colour scheme, featuring the tailfins of all the alliance's member airlines. The airline uses the buses from time to time to communicate special marketing messages – and felt the alliance was the appropriate thing to highlight as it marks its 10th birthday.