Cash-strapped airline to issue only e-tickets for domestic travel

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Cash-strapped airline to issue only e-tickets for domestic travel

DALLAS (AP) ? Stiff fees by American Airlines for passengers using paper
tickets are designed to shift passengers to use the less costly of
electronic ticketing, officials say. The cash-strapped airline will charge
$50 for a paper ticket starting immediately, up from $25. Officials say the
higher fee is designed to "increase the incentive" to use e-tickets.
"It's beyond the point where they will or will not accept e-tickets; they
have to," David Stempler of the Air Travelers Association in Washington,
D.C., told The Dallas Morning News in Friday's online edition. "People
aren't really being given a choice ? not with the big fees that airlines
are putting on paper tickets." The world's largest air carrier, which
averted bankruptcy late last month when key unions agreed to economic
givebacks, said Thursday it will only issue electronic ticket versions for
domestic travel and soon will do the same for international flights. It
costs millions of dollars for paper tickets in printing, auditing for
accuracy and mailing. They must be collected at gates, sent back to the
airline and processed again, with a risk of loss along the way, Stempler
said. The airline lost $1.04 billion in the first quarter and was in the
final steps of cutting $4 billion a year from its costs. Airline officials
declined to say how much it would save from dropping paper tickets. But
it's a move being followed by other major airlines hoping to cut costs. "I
can tell you that the savings and savings potential are substantial," said
American spokesman Tim Kincaid.

New rules mean all domestic trips are eligible for e-tickets and American's
own reservations systems won't be able to issue paper versions. The airline
plans to eliminate nearly all paper ticket transactions by year's end,
although passengers will still be able to get them through a travel agent
for a fee. Passengers eventually will be unable to purchase paper tickets
even through a travel agent because American will no longer be able to
process them. The airline aims to have e-ticket-only travel for
international trips with American's partner airlines by early 2004, and the
airline has pushed back a 100 percent paperless ticketing goal to the end
of 2004 from the end of this year. One advantage of paper tickets is that
they can be redeemed at other airlines' counters, while e-tickets needed to
be converted into paper documents, which meant long waits in lines. But
American and other carriers have addressed that concern by signing
agreements to recognize each other's e-tickets. American has such
"interlining" deals with 10 major airlines, officials say. Now, 84 percent
of American's passengers fly using electronic tickets, up from 65 percent
only one year ago. Some wonder about priorities of American, which has been
lost millions of dollars daily and had to borrow to meet payroll.  "Paper
tickets are not American Airlines' biggest problem right now," said Terry
Trippler, a travel consultant in Minneapolis who also writes for a Web site
called Cheapseats.com.


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