SYMBOL COMPANY NAME
Air Tran Holdings
Alaska Air Group
American Express Co.
Avis Budget Group
Choice Hotels International
Delta Air Lines
The Walt Disney Co.
Gaylord Entertainment Co.
Hertz Global Holdings
Hilton Hotels Corp.
JetBlue Airways Corp.
Las Vegas Sands Corp.
Northwest Airlines Corp.
Red Lion Hotels
Starwood Hotels & Resorts
US Airways Group
- 17. 5
- 27. 2
- 23. 6
- 8. 9
- 9. 2
- 8. 6
- 64. 9
- 37. 4
$1,958.82 $1,571.99 24. 6
CUMULATIVE (NOT INCLUDING AIRLINES) $1,275.64 $971.47 31. 3
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Taking kids along on business trips is becoming more
popular, increasing 19% in just 5 years.
Business Travel with Kids, 2000 - 2005 (in trips)
2000 68 million
2001 62 million
2002 65 million
2003 69 million
2004 76 million
2005 81 million
Source: Travel Industry Association TravelScope®/DIREC TIONS® by DKS&A
NEW JOINT VENTURE WILL LAUNCH WITH USED SHIP
Carnival loses shipyard slot for TUI vessel
By Johanna Jainchill
Carnival Corp. plans to transfer a ship from one of its 10
cruise brands to launch a cruise line being formed by Carnival Corp. and German tour operator TUI.
During its second-quarter earnings calls with analysts,
Carnival said that due to regulatory
delays in closing the joint-venture
transaction between Carnival and
TUI, it had lost the 2010 delivery slot
at Fincantieri’s yard in Sestri Ponente,
Carnival had previously announced
it would use the slot to build a ship
for the new cruise line.
“As a result of the delays in the TUI Howard Frank
transaction, it’s no longer feasible to COO
build a new TUI ship for a 2010 de- Carnival Corp.
livery,” said Carnival COO Howard
Instead, Carnival will transfer an existing Carnival Corp.
ship into the TUI cruise brand in 2009, starting the venture
sooner than planned.
The TUI transaction is now expected to close in the
fourth quarter of this year, behind the company’s original
expectation of the first half of this year, Frank said.
Carnival CEO Micky Arison would not say from what
brand the ship would be transferred but said it would be a
“relatively modern” ship.
Arison did not rule out moving additional Carnival Corp.
ships to the TUI venture down the line.
“We’ll have to see on the TUI brand,” he said. “Once that
gets started, we have the potential to grow it as rapidly as
is warranted, as we have with Aida [Carnival’s German-fo-cused cruise line].”
Carnival had previously decided to move existing Carnival Corp. tonnage to a joint venture it formed with Iberojet.
Carnival said it expected to close that transaction in the
second half of 2007, as well.
Carnival’s plans speak to its quarterly results: Continued
strength in Europe led to a slight gain in second-quarter
profits, offsetting continued weakness in the Caribbean.
Carnival posted a $390 million profit for its second quarter, which ended May 30, up from
$380 million in the same period a
While the Caribbean was still experiencing pricing pressure, the company’s brands outside of North America
produced significant revenue yield
growth, Arison said.
“The decision to expand our European cruise business is working, with
the strength of our European brands
offsetting some cyclical weakness in
the contemporary segment of North
America,” Arison said.
Due to higher-than-expected fuel prices, Carnival lowered its full-year earnings guidance. But Frank said that
pricing was improving in the second half of 2007 and into
2008, especially in the Caribbean, which he noted was a result of getting “aggressive pricing out there.”
Booking volume for Carnival Cruise Lines, which has the
majority of its capacity in the Caribbean, is up 18% over
last year on a 5.5% capacity increase.
Robert’s Hawaii employees get stake in company
By Michelle Baran
Robert’s Hawaii is giving employees a piece of the family
The family-run, Honolulu-based tour operator is transferring 43.5% of the company to its 1,405 employees in
the form of an Employee Stock Ownership Plan.
Under the plan, CEO Robert Iwamoto Jr. and his partners, most of whom are family members, will cede partial
ownership to the employees.
Neil Takekawa, the company’s president, will continue
in his role.
“Our employees are very appreciative to receive this
added benefit and incentive, and that’s creating a strong
positive feeling,” said Takekawa. “It’s a benefit for helping
Robert’s Hawaii become the state’s leading transportation
and entertainment company, and it is an incentive for
each of us to look at our jobs as an owner … and always
looking to increase the value of the company in the years
According to New York-based Corporate Solutions
Group, an investment banking firm that designed and
helped implement the ESOP, the draw for Robert’s Hawaii
is healthy tax benefits and greater employee loyalty.
“This is a great investment for the employees,” said Alex
Meshechok, managing director of Corporate Solutions.
According to Meshechok, employees do not pay into
the ESOP, which was created on Jan. 1 and formally announced to the employees last week.
When employees leave the company or retire, they can
sell their share back to the company. However, payment
can only be made after the ESOP loan is fully paid, which
A Robert’s Hawaii
motorcoach in Waikiki.
will be in six years. Assuming the company continues to
grow, the employees stand to profit. (If the company declares bankruptcy, the employees net zero.)
Consequently, employees have a vested interest in contributing to the growth of the company, according to
“It’s a big trend in family-run businesses,” he said, adding that ESOPs enable families to maintain control of their
businesses while sharing its growth potential with employees, rather than being forced to sell it to another company
or private equity group.
Though Robert’s Hawaii does not release its earnings,
Meshechok said that Corporate Solutions generally helps
create ESOPs for clients that have annual earnings before
tax and interest of between $5 million and $50 million.
Iwamoto’s father, Robert Iwamoto Sr., founded Robert’s
Hawaii in 1941. Today, the company operates diverse services on Hawaii’s four largest islands, including tours and