Bavarian Chef
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NEW YORK (Reuters) - American Airlines said on Friday that it had matched a $50 increase in first-class and full-coach fares by rival Delta Air Lines Inc. in most of its markets, a shift from last week, when it failed to match a similar hike.
"We have matched Delta's increase on full fares in most of our markets," said American Airlines spokesman Tim Smith. "There are some where we didn't for competitive reasons."
The fare hike, the latest in a series of price increases by airlines trying to offset surging fuel costs, is on refundable full-coach and first-class fares, the priciest tickets -- typically favored by business travelers.
The latest round of fare increases was initiated last week by UAL Corp.'s United Airlines. But the No. 2 U.S. carrier canceled the move after the industry leader, AMR Corp.'s American, failed to fully match it.
Delta made a second attempt to raise fares by the same amount this week. Continental Airlines and Northwest Airlines Corp. said they had matched the hike in most markets.
In addition to matching Delta's more limited increase, Northwest also matched another increase in additional markets by American. In some cases the increase by Northwest was less than $50.
The price hikes could be particularly useful for Delta and Northwest, the No. 3 and No. 5 U.S. airlines, respectively. Both are trying to reorganize in bankruptcy.
(Additional reporting by Kyle Peterson in Chicago)
Copyright 2006 Reuters
http://news.moneycentral.msn.com/provider/providerarticle.asp?Feed=OBR&Date=20060407&ID=5630485
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"We have matched Delta's increase on full fares in most of our markets," said American Airlines spokesman Tim Smith. "There are some where we didn't for competitive reasons."
The fare hike, the latest in a series of price increases by airlines trying to offset surging fuel costs, is on refundable full-coach and first-class fares, the priciest tickets -- typically favored by business travelers.
The latest round of fare increases was initiated last week by UAL Corp.'s United Airlines. But the No. 2 U.S. carrier canceled the move after the industry leader, AMR Corp.'s American, failed to fully match it.
Delta made a second attempt to raise fares by the same amount this week. Continental Airlines and Northwest Airlines Corp. said they had matched the hike in most markets.
In addition to matching Delta's more limited increase, Northwest also matched another increase in additional markets by American. In some cases the increase by Northwest was less than $50.
The price hikes could be particularly useful for Delta and Northwest, the No. 3 and No. 5 U.S. airlines, respectively. Both are trying to reorganize in bankruptcy.
(Additional reporting by Kyle Peterson in Chicago)
Copyright 2006 Reuters
http://news.moneycentral.msn.com/provider/providerarticle.asp?Feed=OBR&Date=20060407&ID=5630485
I thought assisted suicide was only legal in ... oh, wait it isn't legal. Seriously, we at blue need some 50 dollar action.
