A $99 one-way introductory fare from United Airlines for its new Boston-London route has carriers on both sides of the Atlantic braced for a fares war.
Analysts say the deep cuts being seen this year over the Atlantic is inevitable, given the extra capacity diverted to this market from Asian routes. But they are startled by United's $198 roundtrip price. Wall Street is holding its breath to see the reaction of other US carriers. American Airlines and Virgin Atlantic are matching the Boston-London fare. British Airways is doing the same on one of its three services in that market. Analysts say the airlines have little choice where they compete directly, but they are waiting to see if there is a domino effect in nearby markets, such as New York-London or Washington DC-London.
Source: Airline Business
