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American Airlines touts cheap fares in effort to catch JetBlue. (Up Front).


When is a fare war not a fare war?

AMR (1) (Adaptive Multi-Rate) A variable rate speech codec selected by the 3GPP for the 3G evolution of the GSM cellphone system (WCDMA). Using the Algebraic CELP (ACELP) compression technology, AMR provides toll quality sound at transmission rates from 4.75 to 12.  Corp.'s American Airlines American Airlines

Major U.S. airline. American was created through a merger of several smaller U.S. airlines and incorporated in 1934. It continued to buy the routes of other airlines, becoming an international carrier in the 1970s; its routes include South America, the
 announcement last week that it would cap one-way fares between Long Beach and New York New York, state, United States
New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of
 at $299 for coach and $599 for first class was a bit of sleight of hand sleight of hand
n. pl. sleights of hand
1. A trick or set of tricks performed by a juggler or magician so quickly and deftly that the manner of execution cannot be observed; legerdemain.

2.
.

American has been in a pitched battle at Long Beach with New York-based discount airline JetBlue Airways, which is offering $139 one-way flights to JFK International Airport. But the $299 fare American is pitching has been in effect since JetBlue named Long Beach Airport its West Coast hub last year and began offering non-stop service between the two destinations, according to CheapSeats.com.

"It's not a real deal," said Terry Tippler tip·ple 1  
tr. & intr.v. tip·pled, tip·pling, tip·ples
To drink (alcoholic liquor) or engage in such drinking, especially habitually or to excess.

n.
Alcoholic liquor.
, who tracks airlines for Minneapolis-based CheapSeats.com. "If you look at what their normal rate would have been, it was already right around that price."

For its part, American Airlines isn't disputing that the announcement may be nothing more than a marketing ploy.

"Customers were nor yet convinced we had the same low competitive airfares as our competitors and that frustrated us," said Todd Burke, a company spokesman. "This is our way of showing customers that we are competitive on Price."

But don't expect other carriers to start chipping away at their prices. Tippler said airfares between Los Angeles and New York are already heavily discounted because of the high volume of flights being offered.

"Time will only tell how much of a groundswell ground·swell  
n.
1. A sudden gathering of force, as of public opinion: a groundswell of antiwar sentiment.

2.
 this will create," said Ron Archer, vice-president of Montrose-based Archer Travel. "But I'm not holding my breath."

As of last Thursday, none of the other airlines serving Los Angeles had announced reductions for 14-day advanced ticket purchases. But that didn't prevent them from talking tough.

Delta Air Lines Inc. has publicly vowed to price its flights competitively with those offered by JetBlue and Dallas-based Southwest Airlines, according to a company spokesman.

"If we consider it to be direct competition, then we are going to be tough on prices with them," said Delta spokesman Adam Black.

Tough is relative. As of last week, the lowest fare offered to New York by Delta, which does not fly out of Long Beach, was $444 round-trip, with a layover lay·o·ver  
n.
A short stop or break in a journey, usually imposed by scheduling requirements.

Noun 1. layover - a brief stay in the course of a journey; "they made a stopover to visit their friends"
stopover, stop
, out of LAX. A regular coach seat on a non-stop round trip out of LAX would cost $2,293 on a 14-day advance purchase.

UAL UAL United Airlines (ICAO code)
UAL Unified Accelerator Library (Brookhaven National Laboratory)
UAL User Account Lockdown
UAL User Access Layer
UAL Universal Auxiliary Language
UAL User Agent Layer
 Corp.'s United Airlines has not lowered its fares, according to travel agents.

A United spokesman said the company is committed to keeping its prices on par with its competitors, but had not recently announced any discounts or lower fares.

Indeed, a round trip coach flight on United from LAX to JFK would cost $1,245 with a 14-day advanced purchase.

"Every airline (other than United) is claiming they won't be undercut on any fare, which is ridiculous at these prices," Archer said. "They're all undermining their own chances of recovery."
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Article Details
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Author:Fixmer, Andy
Publication:Los Angeles Business Journal
Geographic Code:1USA
Date:May 26, 2003
Words:481
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