Continental Airlines today lowered one-way coach and first class fares for numerous flights from its three primary hubs, the latest move by a major network carrier to scale back pricing in the face of low-cost competition. The new fares--which the airline said are "especially valuable to business travelers," those unable to book weeks in advance and those traveling on shorter itineraries--in many cases require only a seven-day advance purchase. The new fares are capacity-controlled, nonrefundable and offered in addition to traditional advance purchase fares.
The new one-way fares range from $259 in coach to $499 in business class. Impacted routes include city pairs between Continental's hubs in Cleveland, Houston and Newark, and such major business markets as Indianapolis, Los Angeles, Miami, Oakland, San Francisco and Seattle.
The new coach fares are in the B and N buckets, while the first class fares are in the Z bucket, none of which are eligible for corporate discount. A Continental spokesman said similar fares may be eligible for corporate discounting in some cases.
Continental's announcement follows other recent pricing moves by major carriers. US Airways, for example, last week brought its lower, simplified fares to 22 routes from Reagan Washington National and Washington Dulles airports. In many cases, the new fares from Washington are competitive responses to Independence Air, a new low-fare airline that launched last week from Dulles
(BTN, April 26).
US Airways previously introduced the new fare types in Philadelphia, primarily in markets in which it competes head to head with Southwest Airlines
(BTN, May 10).
American Airlines this month also announced pricing modifications, albeit on a smaller scale. The carrier's new low fares are in place between its Dallas Ft. Worth hub and five Los Angeles area airports
(BTNonline, June 10). An AA spokesperson said corporate contracts are unaffected by the changes because corporate discounts do not apply to the new, lower fare levels. Refundable fares with any relevant corporate discounts still are available in those markets, the spokesperson said, adding that "each market is unique" and that American continues to formulate pricing strategies on a market-by-market basis.