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Airlines: Why some will soar, other will nosedive

by Courtney Caldwell

Airlines

The struggle continues. The travel industry, it seems, was hit the hardest by the terrorist attacks on September 11, 2001. People feared getting on planes and stopped traveling for quite some time. While all travel businesses suffered to different degrees, it was the airline industry that took the biggest nosedive.

The war in Iraq will cause yet another downturn. Some analysts predict a $500 billion loss this year in the travel industry alone as a result. Many businesses will simply close their doors, others will claim bankruptcy in a last ditch effort at salvation. Some will offer deals beyond your wildest dreams to keep you in the air and visiting their resorts, deals that may be too good to pass up. And some are even willing to negotiate, so don't be afraid to ask.

So why then, with all the devastating losses over the past eighteen months and the impending losses from war, are some of the major airlines still charging pre-9/11 ticket fares and not offering better deals? Logically, one might expect that quantity over quality in this case would work best. In other words, why not lower airfares within reason and offer a discounted airfare coupon to ensure repeat business? Wouldn't this increase odds of filling all seats at the discounted fare as opposed to just some of them at the higher price? Not only would this be good business, and feed the bottom line during a crisis situation, it would also build a better relationship with the public.

Since 9/11, like many people, I've followed what airlines have been doing to save their companies. Northwest, known as an underdog in most circles, has actually been doing an outstanding job at offering reduced fares, special deals, and great connections. Because their main hub is in Detroit, where our offices are based, I use them frequently. Since 9/11 they've never been better or more consistent as far as staying on schedule. It's clear they're working hard at building customer relationships, including a friendlier attitude towards frustrated travelers.

One rising star emerging from the dust is Spirit Air, a no-frills airline that wasn't even a consideration prior to 9/11 for most people. Suddenly, there they were with amazing deals and new destination schedules. I've used them several time since 9/11 and find them to be very accommodating and friendly and their airfares are downright amazing. Did you know that an upgrade to first class is only $40, depending on availability of course? Sure, they don't offer meals or anything fancy, but hell, even the big airlines don't offer meals anymore for flights less than 4 hours.

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