GLG News by Airline Global Distribution System Experts

- Current Fee structure is illogical. Airlines pay 90% of the cost for two-thirds of the usage. - The Air traffic control system is going to get far worse with the continued growth of corporate aircraft and "very light jet" (VLJ's) -Airlines pay for 90% of the air traffic control system and use...

The slowdown is coming - we have two good sources - Airlines and Airports. The impact is not just in the USA but in other market geographies The impact on two specific carriers - British Airways and Singapore Airlines is examined.

Travel in the USA is soft but we see a move to more up market product As the US declines the impact of the cheap dollar and cheap pound is driving traffic from Europe Airport Traffic is showing a sharp drop in growth.

BA is changing and losing its once dominant status in a transformation driven by factors no longer in BA's control. AF-KL combo is now the world's leading airline by far. Competition is bearing down heavily on the carrier.

*    Will the Bush administration or the next administration approve   approve any airlines attempt to merge? *    Unions and communities will fight any merger attempts. *    Other carriers like American and Southwest will...

*Service will get worse...I know that is hard to imagine. *Fares will go up. *Communites will loses both Hubs, flights and jobs. *If it happens it will be Delta merging with Northwest and United merging with Continental and no one want US Airways

Boeing's new 787 Dreamliner is a very complex and advanced feat of engineering The aircraft is late and there are some significant problems both logistically and with the IFE/LAN and Flight Control system software from Honeywell. Is the aircraft at direct and imminent risk at launch?

Investment companies both public and private are pressuring several US airlines to merge, specifically Delta Airlines, United Airlines and Northwest Airlines are mentioned as candidates. While rationalization might be good - good for whom? Are there alternatives, yes there are.

BA formally announces Project Lauren with a new brand "OPENSKIES". Long time BA Exec DALE MOSS is charged to lead the new brand. Interesting choice of cities and impact for BA's competitors

Demand will stay high in many parts of the World. The US economy meltdown driven by Real Estate will cause a more cautious travel outlook. Extra capacity being added in some markets will erode yields.