Hugh Jorgan
Well-known member
- Joined
- Nov 25, 2001
- Posts
- 2,307
Susidized by airline employees, of course.
AIRLINES
Domestic business air fares hit new lows
American Express' Business Travel Monitor, which tracks corporate travel spending, found that air fares typically paid by executive flyers are at their lowest level since the index was started in 1999. Using data from the third quarter of 2004, the monitor said the average fare paid by business travelers for a typical domestic trip was $217 one-way, down 10 percent from the same period in 2003.
"Competition between legacy and low-cost carriers is increasing, and as a result, business travelers are gaining access to lower air fares across a growing list of markets," said Michael Boult, head of an AmEx subsidiary that conducted the study.
The Business Travel Monitor measures fares actually paid by corporate travelers - reflecting a mix of full fares, nonrefundable advance purchase fares and negotiated corporate discounts. While the average fare paid dropped 10 percent, the typical business fares charged by airlines only went down four percent, reflecting greater use of low-cost airlines, discounted economy fares and negotiated corporate discounts by savvy business travelers.
On international routes, however - where major airlines face little or no low-cost competition - first and business class fares went up almost five percent year over year, AmEx said.
An airline industry study reported that during October, legacy carriers suffered their third straight month of declines in passenger revenues per available seat mile on domestic routes.
AIRLINES
American Express' Business Travel Monitor, which tracks corporate travel spending, found that air fares typically paid by executive flyers are at their lowest level since the index was started in 1999. Using data from the third quarter of 2004, the monitor said the average fare paid by business travelers for a typical domestic trip was $217 one-way, down 10 percent from the same period in 2003.
"Competition between legacy and low-cost carriers is increasing, and as a result, business travelers are gaining access to lower air fares across a growing list of markets," said Michael Boult, head of an AmEx subsidiary that conducted the study.
The Business Travel Monitor measures fares actually paid by corporate travelers - reflecting a mix of full fares, nonrefundable advance purchase fares and negotiated corporate discounts. While the average fare paid dropped 10 percent, the typical business fares charged by airlines only went down four percent, reflecting greater use of low-cost airlines, discounted economy fares and negotiated corporate discounts by savvy business travelers.
On international routes, however - where major airlines face little or no low-cost competition - first and business class fares went up almost five percent year over year, AmEx said.
An airline industry study reported that during October, legacy carriers suffered their third straight month of declines in passenger revenues per available seat mile on domestic routes.
