LV airline refines marketing plans

Monday, Feb. 15, 1999 | 9:31 a.m.

Travelers who fly National Airlines across the country can get a free stopover in Las Vegas and stay as long as they like.

That feature, which is bound to be pleasing to travelers who want to add Las Vegas to their itineraries, also will be a bonanza for the resorts that will accommodate overnighting passengers.

The plan was unveiled by NAL co-founder Mike Conway at a Las Vegas Chamber of Commerce lunch last week.

Conway left immediately from the lunch to board a plane to London to pick up the company's first Boeing 757 jet, which is under lease from Sunrock Aircraft Corp. of Ireland.

The jet arrived at McCarran International Airport's Gate D1 on schedule at 3 p.m. on Friday after a fuel stop in Bangor, Maine. About 80 people, employees and McCarran personnel met Conway's arrival with Capt. John McKeon, vice president of flight operations, and Capt. John Pearsall, manager of pilot training.

Conway's free stopover plan was among the details National has begun outlining as the Las Vegas-based carrier gets closer to its first revenue flight. Conway said the company is now projecting that to occur sometime around April 15.

"It's a fantastic idea because the connection point is a destination point," said Terry Trippler, consumer advocate for 1travel.com, a consumer website dedicated to travel issues. "I think it will be successful. How many people will stop over and not want to get back on the plane?"

Conway also began revealing details of NAL's relationship with Rio Hotel & Casino Inc. and Harrah's Entertainment Inc. Rio and Harrah's have each invested about $15 million in the airline. For their investment, the two casino companies, which have since merged, will get exclusive rights to some of Conway's marketing plans.

The airline already had announced that it would establish a presence in the resorts' lobbies. Passengers flying National and staying at either of the two resorts can check their luggage all the way through to their hotel rooms from the airport. On the return, bags can be checked at the hotel and wouldn't be seen again until they arrive at the baggage claim center at the destination city.

Conway said that should allow Las Vegas visitors more time at the hotel before having to leave for the airport.

Initially, the lobby presence will involve the Rio and Harrah's Las Vegas Strip location. Dik Shimizu, director of corporate communications for National, said the company may consider similar operations with Harrah's other properties nationwide, including its Showboat hotel-casinos.

Other plans include heavy cross-marketing of their respective brands.

"When you call an airline today," Conway said, "they'll ask you if you need a car. When you call us, we'll ask if you need a place to stay."

Room reservation personnel at Harrah's and Rio also will ask future guests if they have made their flight arrangements and steer customers to NAL if they haven't.

Conway said the airline also is making plans for a frequent-flier program that would tie in to Harrah's and Rio's slot club programs. NAL is developing relationships with international air carriers to coordinate flights, but may also offer frequent-flier benefits on some of those airlines, which could be beneficial to local travelers.

But it was the free stopover announcement that drew applause and grabbed the most attention at the chamber lunch -- until Conway told the crowd that he was drawing three business cards from a bowl to give away some free tickets.

The free stopover concept isn't unique in the industry, Trippler said. Denver-based Frontier Airlines used to offer a free stopover in Denver. Some carriers allow a free stop on the West Coast for passengers traveling to Hawaii. And Trippler said some companies offer stays in their hub cities on flights to Anchorage, Alaska.

But Trippler thinks the free stop plan will be extremely popular because Las Vegas is such a desirable destination.

National is negotiating other agreements with air carriers that could make travel on the airline even more desirable for international visitors. Shimizu said code-share and interline agreements with other airlines are expected to be announced in the future. Those would coordinate schedules with arrivals and departures of international flights and provide easy transfer of luggage for passengers using more than one airline.

National's initial rollout will include flights between McCarran and Los Angeles and Chicago's Midway Airport.

Within a month, National plans to add San Francisco and New York's John F. Kennedy International Airport to its list of destinations. By April 2000, Conway said the carrier plans to expand its fleet from five to 12 and add Seattle, Detroit, Boston, Atlanta, Newark, N.J. and Tampa, Miami and Orlando, Fla. Within five years, Conway hopes to have expanded to 22 cities.

The airline will fly 175-passenger Boeing 757 twin-engine jets with 22 first-class seats. Conway said NAL will keep fares low by operating routes that are longer than average, using the fuel-efficient 757 on all flights and outsourcing some services.

National has not resolved how it will compensate travel agents. Shimizu said the company is in negotiations with travel agency associations "to come up with a win-win agreement for both sides."

Several major airlines have cut their commissions to travel agencies with the advent of Internet booking systems. Most companies offer 8 percent commissions with a $100 cap. Some carriers are paying even less. In the past, airlines paid 10 percent unlimited commissions.

National hopes to dodge labor issues that have been in the headlines in recent weeks. Shimizu said while the company is not anti-union, it intends to create an environment where employees won't need outside representation. He said if employees vote to unionize despite the company's open-door policy, management would not stand in the way.

American Airlines has had to cancel flights in the past week after hundreds of pilots called in sick as a means of expressing their displeasure with pay issues involving the acquisition of Reno Air and using their pilots.

And, America West Airlines and their flight attendants are at odds over pay issues. The Association of Flight Attendants has asked the National Mediation Board to declare an impasse in negotiations on a contract with the airline. That would start a 30-day clock after which flight attendants could strike.

The flight attendants already have authorized a strike and have indicated they would institute job actions in randomly selected cities around the America West system. That could have a paralyzing effect throughout the system as planes would not get to their destinations for later flights. Since Las Vegas is one of America West's hubs, it could have a greater impact here.

Ironically, Conway was one of America West's co-founders. Unions had not been voted in as employee representatives during Conway's tenure at the airline.