Airline Plot May Yet Have Repercussions

The discovery of an alleged airline terrorist plot in the United Kingdom last month had a temporary — if severe — effect on travel to and from the U.K., while on this side of the Atlantic, passengers struggled for a day or two with longer security lines caused by new carry-on baggage restrictions.

The incident appeared to have no immediate effect on group meeting travel. Carlson Marketing Group of Minneapolis had a group traveling to London the day the security restrictions were put into place. “It went without a hitch,” says Barbara Hollister, Carlson's senior director of industry relations and purchasing. Because the group is cruising back, it avoided the turmoil associated with the heightened security at U.K. airports.

Carlson had about 1,000 people flying that first day, Hollister said. The company e-mailed travelers detailing the new security restrictions and suggesting that they arrive early at their respective airports.

While the long-term effect of the alleged terror plot is still unclear, some analysts believe site selection could be affected. Kevin Mitchell, chairman of the Radnor, Pa. — based Business Travel Coalition, wonders if U.S. resort properties could see more business in 2007. “CFOs and CEOs usually sign off on budgets in October,” he says. “We're right in that sweet spot where people are making [company travel] decisions and commitments. It could mean extra business for U.S. properties if CEOs give up European trips.”

In the days after the security crackdown, Mitchell released a report calling for a “rational national debate” with the idea of “getting aviation security right.” While Mitchell believes a review of aviation security policy is overdue and will probably happen, it could lead to more restrictions on business travel activities. For example, Mitchell says, if laptops were banned from airplanes, “business travelers' productivity would be impacted from the time a traveler left his home until he returned,” and it would affect business travel demand.

Bill Boyd, CEO and president of Sunbelt Motivation and Travel Inc. of Irving, Texas, agrees that a carry-on baggage ban would have a “huge impact” on those short-meeting travelers who travel with a small rolling suitcase in one hand and a laptop in the other. Group travelers, on the other hand, would probably “roll with the punch,” he says.

Mitchell sees last month's events as another wake-up call for company planners. If a plot as comprehensive as the one described by U.K. officials ever succeeded, he says, it would devastate the airline industry. He believes companies should be putting together contingency plans to protect themselves in case of such a disaster. This could include contracting with charter jet companies and expanding videoconferencing capabilities.

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