Business fare cuts take off - Long-subsidized leisure travelers to pay more

lucasiu — Sat, 19 Jul 2003 05:04:33 GMT

http://seattlepi.nwsource.com/business/131126_united17.html

United Airlines, struggling to become profitable, took a gamble in January and cut business fares, hoping to attract reluctant corporate travelers and raise revenue.

United reduced prices between 40 percent and 70 percent in its two biggest markets, Chicago and Denver.

The fares paid by the leisure travellers, however, are likely to rise.

Other major airlines of USA, like American, are going to follow the suit.

America West Airlines, the eighth-largest U.S. carrier, had lowered its corporate fares eight months before United.

Meanwhile, discount carriers such as Southwest and JetBlue have remained profitable and are expanding.

Southwest's profit over the past two years was $752 million while 4-year-old JetBlue became profitable for the first time in 2001 and posted a total profit for the past two years of $93.45 million.

It is the time to have low cost intercontinental carriers in USA like Australian Airlines now.

General Aviation

Business fare cuts take off - Long-subsidized leisure travelers to pay more