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American to charge $100 for stand-by passengers=20
=09
Friday August 30, 4:47 PM EDT=20
(Updates with details, comments, background, adds byline)
By Jon Herskovitz
FORT WORTH, Texas, Aug 30 (Reuters) - American Airlines, the world's
largest carrier, said on Friday it will charge $100 for customers with
nonrefundable tickets wanting to fly stand-by for an alternate flight as
the airline looks to stem a tide of losses.
Texas-based American, part of AMR Corp.(AMR
<http://money.excite.com/jsp/qt/full.jsp?time=3D0&symbol_search_text=3DAM=
R>
), is the third airline this week to adopt strict new measures on
ticketing as the industry battles an ongoing travel slump due to the
sluggish economy and the continued effects of the Sept. 11 attacks.
Virginia-based US Airways Group Inc. (UAWGQ
<http://money.excite.com/jsp/qt/full.jsp?time=3D0&symbol_search_text=3DUA=
WGQ
> ) announced moves to clamp down on rules for nonrefundable tickets
earlier this week. Both US Airways and and United Airlines, part of UAL
Corp.(UAL
<http://money.excite.com/jsp/qt/full.jsp?time=3D0&symbol_search_text=3DUA=
L>
) , have said they will begin to charge passengers requesting paper
tickets.
=20
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59
61739972/site=3Dexcite.reuters/area=3Dmoney.news/aamsz=3D336x280> =09
"Effective for tickets issued on or after Aug. 30 for travel on or after
Jan. 1, American will charge a $100 fee for customers wishing to stand
by for an alternate flight on their ticketed day of departure," American
said in a statement.
American said customers with nonrefundable tickets may make changes to
their flights prior to departure at current fees, but "after the
departure date, the ticket will have no value."
The airline said customers with refundable fares can still fly stand-by
on their ticketed day of departure without a fee and it will honor fare
rules already in place for tickets purchased prior to Aug. 30.
"These policy changes will allow American to simplify its processes and
lower its operating costs, while continuing to offer fares competitive
with low-cost carriers," the company said in a statement.
Groups representing business travelers, who feel they are being squeezed
to help troubled carriers make up for losses on their balance sheets,
have reacted angrily to the changes.
"The Business Travel Coalition believes the intention of this policy
change is to drive business travelers back into fully refundable airfare
classes," Kevin Mitchell, the head of the group, said earlier this week
of the US Airways change.
US Airways said that once a flight takes off, any passenger with a
nonrefundable ticket who misses the plane without having already
canceled the reservation will forfeit the price of the ticket.
Mitchell said the moves aimed at steering business travelers to
higher-fare refundable tickets may backfire with low-cost carriers such
as Southwest Airlines (LUV
<http://money.excite.com/jsp/qt/full.jsp?time=3D0&symbol_search_text=3DLU=
V>
) announcing earlier this month that it will cap its one-way,
last-minute fares at $299 as it tries to expand its business-traveler
market.
AMR has said it will leave no stone unturned to reduce costs after it
lost over $2 billion in the four quarters since the Sept. 11 attacks on
the United States. The industry has lost more than $10 billion since the
attacks and the bleeding shows no signs of stopping.
Demand for air travel is still off since Sept. 11, particularly from
lucrative business flyers who big, full-service carriers like American
rely upon for profits.
Earlier this month, American said it would slash an additional 7,000
jobs by March 2003 and shrink its operation by retiring aircraft and
cutting back on flights.
After the Sept. 11 attacks, which involved two American planes, the
carrier laid off about 20 percent of its staff and cut back capacity 20
percent.
Shares in AMR closed off 29 cents, or 2.8 percent to $10.19 on the New
York Stock Exchange on Friday.=20
=A92002 Reuters Limited.=20
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