Business: Rate War

Hardly had most scheduled airlines jacked up their rates 10% when they began to cut them again. This time it was no orderly, concerted action, but a cutthroat free-for-all. Scared by half-empty planes, the lines were going after passengers with lavish ads, special discounts and other lures.

Even on the international runs, where air traffic was still rising, the planes were getting stiff competition from luxury liners. Many ships were already booked full for next summer while plane reservations lagged. To get the business back, American Overseas Airlines, Pan American Airways and T.W.A....

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