Word: farely
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Dates: during 1970-1979
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...corporate blow for economy-and togetherness. This week Eastern Air Lines, the aggressive carrier headed by ex-Astronaut Frank Borman, inaugurates a bargain fare that brings the concept of the fixed-price, go-anywhere Eurailpass to U.S. air travel. For no more than $323, a passenger can buy an "Unlimited Mileage" ticket that allows him up to 21 days of travel to any or all of 101 cities-excluding Canada-on Eastern's route map, which stretches from coast to coast and to Mexico City, Acapulco and twelve Caribbean islands. The only catch, aside from the fact that...
...savings. A pair of Unlimited Mileage passengers could conceivably lay out a route that would take them from Boston to Seattle, Los Angeles and Mexico City, through the Caribbean to Florida, adding up to about 23,000 air miles of flying-worth about $1,725 at the economy-class fare rate of about 7½? per mile. Delta and National have just come out with their own versions of Unlimited Mileage...
These plans are only the latest salvos in the air-fare war. This month Pan Am, TWA and some foreign flag carriers will begin offering New York-London cut-rate fares that compete with the $236 round-trip Skytrain shuttle designed by Britain's upstart Laker Airways. Within the U.S., airlines have been announcing a profusion of cheap fares since last April; that was when American Airlines set off the bargain binge by offering advance-booked coast-to-coast flights at a "supersaver" round-trip fare of $231, which is 45% under the standard economy rate. Other carriers have...
...answer is the threat of charter competition and fear of Government deregulation. Fare cutting really began to take off after the Civil Aeronautics Board approved the Advance Booking Charters, liberalized charter schemes that promise to become the hottest thing in cut-rate travel. At the same time, the scheduled lines have concluded that it is wise to show some willingness to compete on price now that Congress is considering a sweeping airline deregulation bill, sponsored by Senators Ted Kennedy and Howard Cannon, that would allow airlines more freedom in changing fares and make it easier for new airlines to start...
...quietly been putting what amounts to price deregulation into effect simply by approving almost any new low-fare proposal that it gets. Says Alfred Kahn, an economist who has been CAB chairman since June: "If a carrier is enterprising enough to come up with a new, low fare, I see no reason why it should be penalized. It's up to the competitors to respond...