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American Airlines Cuts Some Fares

August 6, 2002

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DALLAS (AP) _ American Airlines said it has reduced some business-travel fares by 5 percent to 10 percent, matching reductions announced by Northwest Airlines.

A spokesman for American, Todd Burke, said Tuesday that the reductions were for full-fare business seats and full-fare coach seats on selected routes.

The fares are good for travel through June 30, 2003, Burke said.

Susan Donofrio, an analyst for Deutsche Bank Securities, said American announced the fare reductions quietly to customers of participating travel agents instead of posting them in computer systems where they could be seen _ and immediately matched _ by competitors.

Donofrio said American was trying to gain market share from other carriers with what she called an ``under-the-radar″ price cut.

Burke said there was nothing extraordinary about American’s method.

``It’s not unusual for airlines to offer promotions to select (travel) agencies,″ he said.

Separately, Fort Worth-based American announced Tuesday that it has reached an agreement with Finnair to allow customers traveling on both carriers to use a single electronic ticket. The arrangement allows passengers to change plans without being issued a paper ticket.

Both are members of oneworld, one of the major alliances for airlines around the world.

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