SF Gate: Airlines mix it up over business fares

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Monday, March 18, 2002 (AP)
Airlines mix it up over business fares
KARREN MILLS, AP Business Writer


   (03-18) 21:09 PST MINNEAPOLIS (AP) --
   Major airlines are going at it in a battle of strategically-chosen fare
cuts.
   Airlines are selling round-trip tickets with merely a three-day advance
purchase for as low as $198.
   Such fares are particularly attractive to business travelers. But they're
usually on one-stop flights in markets where rivals offer nonstop flights.
   The skirmish is rooted in American's attempt earlier this month to
restructure its rules for business travelers, airline analyst Terry
Trippler of Minneapolis said Monday.
   The airline temporarily increased the three-day advance purchase
requirement to seven days and hiked the seven-day advance purchase to 14
days. Continental Airlines matched American's move, but the other airlines
didn't. And American withdrew the change.
   Trippler said American subsequently dropped fares in nonstop markets of
Delta Air Lines, United Airlines, Northwest and US Airways.
   On Monday, American offered a $260 round-trip fare between Detroit and
Minneapolis with a stop in Chicago or St. Louis. On the same route,
Northwest offered nonstop service at $1,100 round trip for a three-day
advance purchase ticket. American also offered the same fare between
Atlanta and Seattle, a Delta nonstop market.
   Northwest, meanwhile, was offering a $286 round-trip between Chicago and
New York, with a stop in Detroit, on just three day's notice. American
flies nonstop on that route and was selling it for about $1,000 with three
day's notice.
   A spokesman for Northwest confirmed the fares and said the company didn't
agree with American's rule changes because it viewed them as a fare
increase for business travelers. A spokesman for American didn't return a
call for comment.

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Copyright 2002 AP

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