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Friday, January 07, 2005

Airlines respond to Delta

As expected and predicted by industry experts, several major airlines on Thursday followed Delta’s lead in reducing fares and revising policies.
American Airlines responded to Delta’s new plan by matching the latter’s fare structure, reducing its most expensive fares and lowering fares for last-minute travel between thousands of destinations.
The nation's No. 1 carrier also eliminated Saturday-night stay requirements on most flights, the statement said. The new fares apply to flights operated by American Airlines, American Eagle and AmericanConnection.
Not to be outdone, Continental, United, Northwest Airlines and US Airways, all moved to match Delta's price cuts, says Internet travel site Bestfares.com.
However, these carriers did not announce overhauls to their fare structures.Under Delta’s new plan, fares to cities in the continental United States are reduced by up to 50 percent, Saturday night stay requirement is eliminated and ticket changes are reduced from $100 to $50.
Also, the airline says no one-way coach ticket will cost more than $499 and no one-way first class ticket will cost more than $599.
Industry expert caution that the fare war could lead to more trouble for the be beleaguered industry.
(Source: eTurboNews)

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