AirTran Lowers Business Fares, Reduces Walk-Up Availability

AirTran Airways today instated a new reduced fare structure within its business class, walk-up and three-day advance purchase ticket categories, as well as its seven-day and 14-day advance purchase leisure fares. Business fares were reduced by $10 to $40, though AirTran's business class tickets remain $25 above full coach fares. The airline also decreased the number of walk-up fares available in each market.

The adjustments were made in reaction to the current economy, said vice president of planning and sales Kevin Healy.

AirTran's simplification of its fare structure comes a month after a similar move by major carrier America West Airlines that prompted competitors to match on flights in and out of Phoenix. The move by AirTran may force Delta Air Lines to consider adjustments to pricing from its Atlanta hub.

Also responding to competitive fare structure pressures, BMI British Midland yesterday announced it would drop Saturday night restrictions and minimum stay requirements on all domestic flights from London Heathrow. The rollbacks also now will permit passengers to mix fares within each cabin on each flight segment and change names on tickets up to two hours before departure.

BMI followed British Airways' move earlier this month in dropping similar restrictions for its economy class from all London airports. BA made the move in reaction to the fare structures of such low-fare airlines as EasyJet, which flies from Gatwick.