Air Rates Down

Last autumn Transcontinental & Western Air infuriated its two major rivals, United and American Airlines, by cutting its fares about to railroad levels (TIME, Nov. 9). TWA took this risky step for two reasons: to counteract the usual traffic slump in winter and to counterbalance the fact that both United and American temporarily had more luxurious equipment. American got the first Douglas DC-3 sleepers last year, did not dare put an extra fare on them in the face of TWA's cuts. United, however, did add a $2 surcharge for the non-stop run from Newark to Chicago which it inaugurated two months ago on the Skylounge DC-3, which has 14 swivel chairs instead of the usual 21 fixed seats (TIME, Jan. 25). Meanwhile TWA got along with the three-year-old model, 14-passenger DC-2's, gradually found that its fare cuts had been too drastic.

In a month. TWA will have the first of its DC-3's and the three transcontinental airlines will again be on a par in equipment. Last week, therefore, they sensibly agreed to compromise the rate war, profit by each other's experiments. United and American agreed to lower their rates half as far as did TWA last year. TWA will now raise its rates to that level. In addition, the three lines agreed to set up the first rate structure in air transport history with three distinct classes of travel corresponding to railroad sleepers, chair-cars and day-coaches. As of May 1, the basic transcontinental fare will be $149.95.* This will buy a seat in a standard DC2 or DC-3. An extra fare of $4 will buy a swivel chair in a deluxe DC-3, while $8 will buy a berth. For shorter flights the extra fares will be less. Holders of scrip tickets will still get a 15% reduction.

*TWA has been charging $139-95, United and American $160.

This file is automatically generated by a robot program, so reader's discretion is required.