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Airlines react to Delta’s deep fare cuts
Delta drastically lowered its fares this week. Following are reactions to this move:
· American, Continental, US Airways, Northwest and United Airlines joined Delta in matching its fares in select markets.
· Northwest Airlines said Delta’s policy would have an adverse impact on industry revenues.· The Business Travel Coalition says it believes Delta’s policy is anti-competitive and may ask the US government to investigate.
Delta cut fares by up to 50%.
The airline has placed a maximum cap of $499 one-way on any seat, including last available.
American’s cap is $699, one-way. United, Continental, Northwest and US Airways have not placed any caps on their one-way or roundtrip fares.
The carriers matched Delta on about 90% of the routes where they compete, according to PR Newswire.
Meanwhile, AirTran says it’s still cheaper.
Kevin Healy, vice president planning, pricing and sales, said: “AirTrain Airways has always offered, does offer and will continue to offer the lowest fares in the market.”
He said the airline checked its 713 markets to find it had lower prices despite Delta’s new “SimpliFares” reduced prices.
“After checking all of our fares in our 713 markets we serve, we did not have to change any of our fares to match Delta,” he said. “In fact, we would have to raise our fares to match them.”
He derided Delta’s new SimpliFares as “really no big deal.”
Report by David Wilkening
David
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