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Northwest backs out of recent fare hikes

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Citation style...
Nov 11, 2003
...but they're still going after labor with teeth bared!


The latest round of $20 roundtrip fare hikes by major U.S. airlines have begun to come unglued. The increases, initiated by United and Delta last week and then matched by Continental, American, US Airways and Northwest, will be rescinded now that Northwest has backed out, according to the CEO of Bestfares.com.

Tom Parsons said Monday that as the weekend began all the legacy carriers were on board for the 10th round of domestic leisure increases since the weekend of Feb. 24.

But then Northwest rescinded its hikes on Saturday.

"American, United, Delta, Continental and US Airways were caught sleeping over the weekend after Northwest's change of heart," Parson said, adding that travelers buying tickets online over the weekend found Northwest cheaper, "an advantage not well-received by the other legacy airlines."

Parsons said the rivals "will be forced to roll back their airfare hike to the previous levels at least."

With the exception of US Airways, all the carriers involved serve Sacramento International Airport. The top carrier here, discount player Southwest Airlines, didn't get involved.

Published August 16, 2005 by the Sacramento Business Journal
The morons at NWA are unbelievable. They are literally piping their employees, shareholders, and other carriers by rescinding the fare increases.

What a bunch of morons.
Its almost like daytrading. Sell the other guys short for a weekend of advantage. I think the NWA mgmt team really enjoys this scorched Earth policy. It's almost like they wait till the weekend is approaching and Steenland says to the boys, "steady men,... hold it.... wait for it......steady Bill.... OK , ...NOW ...LOWER THE FARES!!!!! and then they all do a virtual high five and teleconference how they screwed the other airlines out of a weekends worth of fares. Is this a business strategy?
Nothing new. They have been instrumental in tanking increased revenue through fare hikes and pricing power within the industry for the last several years.
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