NYTimes.com Article: Memo Pad: Business Fares at Low

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Memo Pad: Business Fares at Low

April 6, 2004
 By JOE SHARKEY





BUSINESS FARES AT SIX-YEAR LOW The general collapse of high
business-fare structures and advance-purchase restrictions
was clearly noted on corporate travel departments' bottom
lines in 2003, as average business air fares paid fell to a
level not seen in six years, American Express says.
Competitive pricing responses by major carriers to
incursions by low-fare carriers are a prime reason for the
drop to a $276 average fare paid last year, the lowest
since $256 in 1996, according to American Express. Average
fares are calculated from a variety of fare types booked by
business travelers, including full walkup fares,
nonrefundable advance-purchase tickets and negotiated
corporate discounts.

NEWS MEDIA NOT ENTRANCED Virgin Atlantic Airways, which
already offers professional massages in its Upper Class
cabins, received a lot of phone calls from the news media
last week after it sent out a press release, dated March
31, announcing that it was planning to offer hypnotherapy
to passengers. Virgin even quoted its chairman, Sir Richard
Branson, as saying that hypnotists would be available to
offer therapies for making passengers "believe they have
been upgraded," among other things. Only a few news outlets
around the world evidently fell for the April Fool's joke,
but a lot checked it out with Virgin's press office. Only
"a few seemed perturbed" at the prank, part of an April
Fool's tradition at fun-loving Virgin, a unit of the Virgin
Group, said Elizabeth Ciresi, a spokeswoman.

FOREIGN TRAVEL UP There is more evidence of the resurgence
in international travel from domestic airlines' data on
March traffic, compared with March 2003. The five major
airlines that had released March numbers as of yesterday
reported they had sharp increases in overseas traffic as
measured in revenue passenger miles. At AMR's American
Airlines, international travel was up 20.9 percent
(compared with a 7 percent rise domestically). Delta Air
Lines' international traffic rose 16 percent (7.9 percent
domestically). At Continental Airlines, international
travel was up 17.7 percent (6.3 percent). US Airways'
overseas traffic rose 24.2 percent (4.5 percent), and
Northwest Airlines reported an increase of 9.4 percent (2.8
percent).

CHALLENGE TO WATCH LIST The American Civil Liberties Union
says it will file a lawsuit to challenge the so-called
no-fly list, a consolidated watch list containing the names
of thousands of people with suspected terrorist or other
threatening connections. The list is being phased in at
airports by the Transportation Security Administration.
People whose names match one on the list, which has been
consolidated from various watch lists maintained by
government agencies, will be subject to extra security or
prohibited from flying altogether. Numerous travelers have
complained about being harassed at airports because they
share a name with someone on the lists. The A.C.L.U. plans
news conferences in three cities today to release details
of its suit, whose plaintiffs include a retired
Presbyterian minister, a member of the military and a
college student.

BUSINESS JETS AND EUROPE Business aviation has
traditionally faced both cultural and geographical hurdles
in Europe, where public attitudes toward corporate
highfliers are more negative than in the United States and
extensive high-speed train networks with luxury services
adequately serve most medium-range distances typically
flown by the company plane. That may be changing,
especially as security measures cause new delays at
European airports. NetJets, the leading United States
provider of corporate fractional-jet services, says it is
investing $312 million in the European private jet market
this year and buying 21 new planes, including two
Gulfstream IV-SP jets capable of making trans-Atlantic
trips. NetJets is owned by Berkshire Hathaway

JOE SHARKEY


http://www.nytimes.com/2004/04/06/business/06memo.html?ex=1082259908&ei=1&en=23076d332ca38c54


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