Word: alitalia
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...small matter. Alitalia, KLM, Lufthansa and Sabena have appealed for preservation of duty-free shops, which are a source of considerable income for the airports. Also worried is British Railways, which operates ferries that carry 6,000,000 travelers across the English Channel every year. These tourists are such eager spenders that British Railways is building new ships with on-board duty-free "supermarkets" so capacious that passengers will be given self-service shopping carts to push around...
Some IATA members cling to the hope that a compromise can be reached before transatlantic chaos sets in. Says Fabrizio Serena, a deputy director gen eral of Alitalia: "Lufthansa has been making noises to the effect that it might possibly review its position if the rest of us make some move toward them." If they come at all, conciliatory moves will probably be made next week, when IATA members meet in Miami to dis cuss fares to Asia and Latin America...
...longer willing to be locked out of this lucrative trade, other West European airlines are pressing for landing rights in West Berlin. Alitalia, SAS and KLM have been particularly active, but Sabena and Swissair have also put out feelers. Much to the consternation of Pan Am, the U.S. is willing to welcome additional carriers, but Britain is so far unwilling to agree...
...hitched a welcome wagon of giveaways to its flights: each youth-fare passenger gets a book of coupons good for 10% to 50% discounts in restaurants and discotheques. Alitalia announced the best cost-per-mile bargain: a $199 round trip between New York and Rome. Icelandic Airlines, dubbed the "hiphop airline" by the hairy hordes who prefer it. rolled out the cheapest European youth fare: a $185 round trip between Aug. 1 and Sept. 10. and $165 the rest of the year...
...favor broad fare reductions. "It's one of the biggest frauds in the industry," said BOAC's Canadian Director John Gorman. "Why should youth travel be subsidized by everyone else?" Indeed, almost everyone else is angry. A pair of sisters, Elizabeth and Suzanne Marie Gallagher, have hit Alitalia with a $1.5 million class-action suit, claiming age discrimination in its $199 youth fare. The radio news staff of the Canadian Broadcasting Corp. has signed a petition to IATA members demanding an end to discriminatory youth fares. Aviation-law experts say that the fares may be discriminatory...