Business: Airlines: All's War in Fares

But rate cuts will not long solve the carriers' troubles

"The new fares are generating profits and new passenger traffic. "

—United Airlines President Richard Ferris

"These fares just generate price wars. "

—Delta Air Lines Marketing Vice

President Joseph Cooper

As in Rashomon, the Japanese legend made into a movie, airline executives have widely differing views about the same phenomenon: in this case the spreading cut-rate fares on U.S. and transatlantic flights. What is beyond dispute is that the often bewildering variety of bargains offered by the eleven long-haul lines is stimulating a rush to pleasure travel. That in turn...

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