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Fares might easily run to a week or more's salary for all but the richest jet-setters.Then deregulation, starting in the 1990s, created a new low-fare industry almost from scratch.
The proposed purchase of Trans World Airlines by American Airlines was supposed to be the subject of a Senate committee hearing today, but it strayed into a discussion about frustrations over high air fares, industry consolidation and airline delays.
With overall domestic capacity expected to be up more than 10percentthis summerer over last summer and low-cost carriers continuing to challenge bigger rivals for market share on competing routes, the sagging fares in May suggest that downward pressure could continue on summer domestic fares, industry analysts said.
"Ryanair went to war with them" by poaching pilots and undercutting fares, said Shane Matthews, a transportation industry analyst at NCB Stockbrokers in Dublin.
Discounted fares in the industry also lowered the average fare, Frontier said.
Still, most merged companies in the drug industry fare poorly after the deal.
And consumers have become surprisingly adept at shopping on the Internet for the lowest fare, frustrating the industry.
Mr. Boroch counted six industry fare increases in the third quarter, yet Southwest's average ticket price for that period, $105.37, was just 62 cents higher than a year earlier.
WILLIAM A. CRAMER West Lafayette, Ind., Aug. 17, 2013 To the Editor: Joe Nocera's column points out some basic facts that are driving airline mergers: fuel costs (about 35 percent of a ticket price) have tripled since 2000; the 9/11 security costs have in some cases been greater than the airline fare; and the industry has lost $70 billion in capital in the last decade.
Any Swiss bank worth its salt should be able to devise instruments that offer a way round the new rules.How would Switzerland's financial-services industry fare if the country ever joined the EU? Bankers are generally unenthusiastic about membership.
How will the auto industry fare in 2004?
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