SF Gate: British Airways cuts its fares to London

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This article was sent to you by someone who found it on SF Gate.
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/11/BU209729.DTL
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Tuesday, February 11, 2003 (SF Chronicle)
British Airways cuts its fares to London
David Armstrong, Chronicle Staff Writer


   In what could kick off a fare war, British Airways said late Monday that
it will drop its midweek economy-class round-trip fares between London and
all 20 of the U.S. cities it serves to $198 from Feb. 18 to March 31.
   Normally, San Francisco-to-London tickets run in the $400 to $500 range =
in
midwinter, when leisure travel slows down.
   However, weak leisure travel, slumping business travel and fears of war
have pushed demand down. As a result, airline experts predict British
Airways' actions could pave the way for a transatlantic fare war in the
next few days.
   "This offer marks the first time anyone on the West Coast may purchase a
ticket to London for the same price as anyone from the East Coast or
Midwest," said Elizabeth Weisser, vice president of marketing in North
America for British Airways.
   British Airways has twice-daily nonstop flights between San Francisco
International Airport and London's Heathrow Airport. In summer, the
airline typically adds a third daily nonstop.
   The busy, highly competitive SFO-to-London route is served by several
carriers, including United Airlines and Virgin Atlantic Airways.
   British Airways' latest fare initiative comes amid already-low fares to a
variety of European cities by U.S. and foreign carriers, according to Tom
Parsons, a principal of Bestfares.com, an air travel Web site. Typically,
very low fares are matched by competing carriers, said Parsons, who added
that he expects British Airways' rivals to match the low London fares.
   United Airlines, the largest carrier at SFO, operates daily nonstop
flights to London. It did not say late Monday whether it would match the
new fare.
   British Airways' fare announcement comes as airlines are pressing hard to
fill seats by lowering fares.
   For instance, several carriers are selling round trips from the West Coa=
st
to Madrid for $300. US Airways announced a $199 round-trip flight from the
West Coast to Munich on Monday.
   "The market is very cheap. There are a lot of bargains," said Parsons,
adding that he expects leisure travelers to shy away from even these cheap
fares if war breaks out.
   British Prime Minister Tony Blair has closely allied his country with the
United States, and Blair's government has said it expects Britain could be
a likely target for any terrorist reprisals.
   In past years, British Airways has offered a $198 London round-trip fare
from Denver, Phoenix and San Diego, but this is the first time it has
applied to other West Coast hubs such as SFO and Los Angeles International
Airport.
   The discount fares go on sale at 7 a.m. today and must be booked and paid
for by Thursday, according to the airline. The special fares will be
offered again from Nov. 1 to Dec. 15.
   The offer comes with a number of other restrictions. It applies only on
Monday through Wednesday for eastbound flights and Tuesday through
Thursday westbound. With $96.50 in taxes, the total cost goes to $294.50.
   Round-trip fares on the largest British airline are low by historical
standards during the rest of 2003: $498 in the peak July and August
season, $398 in June and September, and $298 for April, May and October --
all before taxes -- the airline said Monday.

   E-mail David Armstrong at david armstrong@sfchronicle.com.=20
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Copyright 2003 SF Chronicle

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