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Central Oregon businesses run into trouble with airline bank accounts
[August 02, 2006]

Central Oregon businesses run into trouble with airline bank accounts


(Bulletin, The (Bend, OR) (KRT) Via Thomson Dialog NewsEdge) Jul. 31--Some Central Oregon businesses have reported problems using their Delta Air Lines travel bank accounts to buy tickets for flights out of Redmond.

More than $44,000 remained in the program as of early July.

The travel bank program, through which local businesses pledged advanced payment for Delta Connection tickets, was instrumental in convincing Delta to start twice-daily service to Salt Lake City in March 2005. The advance ticket commitment, which totaled $654,000, provided a financial cushion for the new flights, which proved popular and have since expanded to three daily flights.

Travel bank customers, comprising more than 110 area businesses, were asked to use their deposits by March 2006. That period has been extended to the end of this year.

"We've had a few problems along the way," said Laury Benson, chief financial officer of Bend marketing and advertising firm The Mandala Agency.


The main problem encountered by most businesses came when the remaining amount in the travel bank was less than the tickets they intended to buy.

Many Delta agents did not know how to combine funds from the travel bank account with another form of payment to complete the transaction.

"When our account went down to $200 and we're looking at a $500 ticket, we had to put the rest ($300) on another credit card," Benson said. "And the travel agent we dealt with didn't quite know how to do that."

Kathy Turner, an executive administrative assistant with BendBroadband, handles the company's travel plans. Turner said the company left a small amount of money in the travel bank.

"Our experience was mostly good," Turner said. "But when we tried to retrieve the rest of the balance, it was difficult and we just decided it wasn't worth the effort."

The account had less than $100 in it, she said.

Delta spokesman Anthony Black is confident that his company's service representatives can handle travel bank participants' concerns, adding that the program is still a fairly new initiative.

"I think that anytime you're using a new (concept) there needs to be some time for people to work through the system," Black said. "And we're working through that."

Alana Audette, president and CEO of the Central Oregon Visitors Association, said her organization encountered a few glitches when trying to access its travel bank account. Delta customer service representatives' experience has varied, she said.

"On some occasions, they were able to help us," Audette said, adding that a special service agent was required in some instances. "So the issue is only with particular agents."

Officials from Bank of the Cascades, Wells Fargo Bank, Microsemi Corp., Sunriver Resort and Edge Wireless LLC said they've had no problems with their travel bank accounts.

For Microsemi, part of the reason is Debby McArthur.

McArthur, owner and manager of Round-Trip Travel Inc., handles Microsemi's travel plans. She said the leftover amount from the travel bank needs to be transferred to voucher form before it can be used with another form of payment.

"Nobody I deal with has problems (with travel banks) because I know how to do it," she said, adding that it's common that airline service agents aren't as experienced. "Service people are expendable for airlines, and bankruptcy affects that. It's very common that people at the airlines don't know what to do (with travel banks)."

Delta, based in Atlanta, is currently under bankruptcy protection.

Despite the travel bank problems, most businesses said they would participate in the program again if it helped attract new service to Redmond.

"Yes, we would," said Mandala's Benson. "We travel to the East Coast all the time. It's a no-brainer."

BendBroadband's Turner agreed.

"I think it was important (to get the Salt Lake City flight)," she said. "We may consider travel banks again. (A flight to) Denver would definitely work for us."

Weekend only United Express flights to Denver began in June and end in September, but many local business representatives hope the flights' reported success will lead to daily service. Airline officials have refused to speculate about prospects for daily operations.

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