Business Services Industry

Northwest, American Tussle Drops Business Fares for First Time in Years.

Knight Ridder/Tribune Business News, August, 2002

By Eric Torbenson, Saint Paul Pioneer Press, Minn. Knight Ridder/Tribune Business News

Aug. 7--An airfare tussle that broke out late last week continued Tuesday between Northwest Airlines and American Airlines, resulting in lower business fares for the first time in years.

The move affects only a few American Airlines fares from the Twin Cities, and it's too early to say whether the 20 percent or greater discounts will stick around in other markets. But the move is significant because it may signal a willingness to rethink industry pricing practices that have pushed business fares up.

For the past six years, carriers have increasingly asked corporate travelers to subsidize their low leisure fares.

The travel industry is paying extra...

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