MINNEAPOLIS -- Most of the major U.S. airlines selectively matched
Northwest's new discounted advance-purchase fare that does not
require a Saturday-night stay.
United matched only where it competes with Northwest in hub
markets. American matched in four competing markets: Minneapolis to
Boston, Los Angeles to New York, to Detroit-Los Angeles. And Delta,
US Airways and TWA matched in selected markets.
The new Northwest fare, called BizFlex, is a 10-day
advance-purchase rate priced 40% below full coach fares. The fare
is available throughout Northwest's network in the U.S. and
Canada.
Some agents had mixed reviews of the initiative. Harold Stevens,
president of Stevens Travel Management, in New York, said the
airline is probably concerned about excess capacity in the market
as well the impact of higher fuel prices on the economy.
"I've got to believe part of it is [the airline's] concern about
where the economy is," Stevens said.
Rob Moses, vice president of corporate development at Saddle
Brook, N.J.-based First Travel Management International, said the
move makes little sense to him, unless there is some underlying
motive.
"I don't understand any move that is open to the public like
this unless it's because [the airline] is hurting and it is looking
to stimulate business," Moses said. He added that such a move is
tantamount to restructuring the entire airline fare system, a move
that Robert Crandall attempted in the early 1990s with value
pricing.
The real impact of BizFlex fares is likely to depend on how much
business travel moves from full coach fares into the discount
category. Officials at American Express predicted that few business
travelers will book beyond the 10-day advance- purchase window.
"It will offer some [motivation] to people who are not traveling
at all or [who are traveling in] their cars," an Amexco spokeswoman
said, adding, "It's not going to have a huge impact on corporate
travel budgets."