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Delta's drop calls American into action

Posted : Thu, 06 Jan 2005 00:00:00 GMT
By : J. King
Category : Travel
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This week Delta Air Lines Inc. unveiled a new fare pricing structure that will be simpler to understand and more important for customers, cut prices for last-minute flight booking travellers. Today American Airlines has responded along with other major passenger carriers such as United Airlines, who have also indicated ticket price reductions.

Delta has said it will also do away with the Saturday-night stay over requirements for all passengers, this is part of a dynamic move to get customers back to the airline and fill flights. Incredibly some tickets, which are not bought in advance could be reduced by as much as 50 per cent under the new rules and should benefit many thousands of travellers who could save hundreds of dollars.

The expansion of reduced airline ticket prices is based on positive feedback from its customers, Delta Chief Executive Gerald Grinstein said in a statement. The new rules are now applicable across the country, Delta introduced the new fare structure in August last year in Cincinnati. Delta claims the new structure will be cheaper to administer. Airline industry analysts have predicted that other carriers will now be forced to cut their prices in order to compete with Delta's low fares.

Latest information provided indicates that there are now five other US airlines, including American Airlines who are to match Delta Air Lines Inc. and lower prices on some of their flights and have also dropped some restrictions.

Delta and other airlines believe that although cutting their ticket prices for may hurt the airlines in the short-term but they believe in the longer term airline revenue will strengthen.

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