Dramatic price changes in the air for US airlines
American Airlines announced a simplified domestic fare plan, which is another sign of the major US airlines turning to a dramatically new pricing model: discounted carriers.
Said Tom Parsons, CEO of Bestfares.com:
“We haven’t seen a major change like this since 1992 when American introduced its simplified system.”
Mr Parsons predicted other major carriers will be cutting fares, a trend started by Delta Air Lines with its “SimpliFares” program.
Between American and Delta, 60% of the US domestic flights now offer simple fare systems that vastly reduce the cost of last minute tickets.
Other major airlines have not at this time announced any major overhauls, but some have matched Delta’s fares to destinations where they compete directly.
Fare simplification for other airlines is only a matter of time, suggested Jon Ash, an airline consultant.
American cut fares on tickets bought fewer than three days in advance by as much as 50%, depending on the route.
The airline also eliminated the Saturday-night-stay requirements in most markets and sharply cut the number of fare classes in coach and first class.
American restructured its fares differently than Delta, however, and differences include American’s top last-minute, one-way coach fare. It is $699. Delta, however, has capped one-way domestic coach fares at $499.
There are other differences as well.
Airline officials say the change is essential to win back business travelers from discounters.
Report by David Wilkening
David
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