AIRLINES: Shoot-Out in The Skies

Shoot-Out in The Skies

As the airline industry has swiftly consolidated through a whirlwind of mergers, many travelers have wondered whether less competition would mean higher ticket prices. The answer: not necessarily. In the past two weeks a new fare war has erupted among several major carriers. Continental, Pan Am and TWA are offering fares that run as low as $89 between New York City and San Francisco and $39 between Denver and Salt Lake City. Those prices are reduced as much as 25% from existing discount fares.

As usual, though, the cut-rate prices are loaded with restrictions and are limited to about a third...

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