As Fare Wars Get Bloodier...

Fair prices--or fare wars? When American Airlines unveiled its four-tier fare structure in early April, it bet that simpler and lower fares would boost revenues by attracting more travelers. But the move may have backfired. Trans World Airlines and USAir retaliated with steep price cuts, and American was forced to lower fares again to remain competitive.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.