NYTimes.com Article: Trans-Atlantic Fare Cut

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Trans-Atlantic Fare Cut

September 28, 2004
 JOE SHARKEY





TRANS-ATLANTIC FARE CUT Jack Foley, the executive vice
president of Aer Lingus-North America, concedes that he
speaks heresy, if not outright apostasy. Yesterday,
figuring that it can lure away business travelers
exasperated by trans-Atlantic round-trip fares of $6,000
and up for business class, Aer Lingus, the Irish airline,
announced sharply reduced fares in both business class and
economy. The fare structure has been simplified and the
need eliminated for round-trip purchases and Saturday night
stayovers to obtain the best fare. Fares in business class
have been permanently cut by 50 percent or more, and those
in economy reduced by 20 to 30 percent. "The strategy is
basically to say, the low-fare concept is coming to the
Atlantic routes," Mr. Foley said yesterday. Some examples:
Unrestricted nonstop one-way business-class fares between
Los Angeles and Dublin are now $3,695, a 60 percent cut
from previous fares. New York to Dublin is $1,504, a 43
percent reduction. Trans-Atlantic routes have long been
plagued by high capacity and high fares. Aer Lingus uses
seven Airbus A330's, with 24 business class seats in each,
on about 47 round trips a week between the United States
and Europe.

BIG GAINS, BIG LOSSES International passenger traffic
increased 18.7 percent in the first eight months of 2004,
compared with the same period last year, the International
Air Transport Association said yesterday. "More capacity is
now entering all major markets,'' the trade group said in a
statement. Its general director, Giovanni Bisignani, said,
however, that with soaring oil prices eating up any gains,
"We expect that the airline industry will lose between $3
billion and $4 billion" across the world this year.

OFF WITH YOUR COAT The Transportation Security
Administration has announced new screening procedures that
will expand the use of manual pat-downs of passengers and
give screeners more latitude in deciding when to refer a
passenger to the more invasive secondary-screening process.
The agency said the moves were in line with recommendations
in the 9/11 commission report that all passengers be
checked more thoroughly for explosives. All passengers are
now required to remove coats and jackets and place them on
the conveyor belt. Policies on shoe removal have also been
changed. At many airports, travelers say, everyone is now
required to remove shoes and place them on the belt.
Before, those who knew their shoes would not trigger the
magnetometer were free to walk through with their shoes on.


BEST SHOWS IN THE AIR Among the world's commercial
airlines, United Airlines, Virgin Atlantic and SriLankan
Airlines have the best in-flight video and audio
entertainment systems, according to an industry survey by
the World Airline Entertainment Association, released at
the group's annual trade show in Seattle last week. JOE
SHARKEY

http://www.nytimes.com/2004/09/28/business/28memo.html?ex=1097383107&ei=1&en=9a3341f727fb3fa1


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