"Hub-based flights pricier than most"

Saturday, November 13, 2004

Hub-based flights pricier than most
By John Strahinich
The Boston (MA) Herald


While airlines are slashing fares to record lows in most cities, passengers
in Boston are being gouged by skyrocketing ticket prices to many
destinations, according to a study by an airline industry consultant. 
 
Local business and vacation travelers flying major carriers to such places
as Charlotte, N.C., and Detroit are paying well above $1,000 round-trip,
according to an analysis of second-quarter prices by Back Aviation
Solutions, of New Haven, Conn. 
 
But passengers elsewhere are paying as little as $200 to $400 round-trip on
the vast majority of the 1,000 or so domestic routes the firm examined for
The Wall Street Journal, which published the results yesterday. 
 
The reason for the Hub's high fares: the major airlines' stranglehold on the
Boston market. 
 
``You see higher fares in markets that have only one principal airport and
are dominated by the major carriers,'' said Michael Allen, the firm's chief
operating officer. 
 
Delta Air Lines, American Airlines, U.S. Airways, and United Airlines
together account for almost 75 percent of Logan International Airport's U.S.
traffic, Allen added. 
 
The Air Transport Association of America, which represents the industry,
declined to comment. But a spokesman for American Airlines said the high
prices in Boston were not surprising. 
 
``Every route is different and the pricing reflects that,'' said the
spokesman, who asked for anonymity. ``We don't think we're ripping anybody
off.'' 
 
Another reason for the high prices is that low-cost carriers, such as
JetBlue, Air Tran, and ATA, have so far made few inroads in Boston, Allen
said. But he predicted that as these budget airlines add planes next year,
they would give some of the priciest routes a second look. 
 
The moral of the story, said Bill McGee, a travel consultant to Consumer
Reports: ``When you don't have low-fare airlines, prices stay high.''


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