Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!usa-post Newsgroups: usa-today.travel From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: travel Mon, Feb 24 1992 Date: Mon, 24 Feb 92 06:25:44 EST Message-ID: DECISIONLINE: Travel USA TODAY Update Feb. 24, 1992 Source: USA TODAY:Gannett National Information Network BIG THREE OWN HALF THE MARKET: Three airlines now own half the U.S. market. That's the first time the industry has been so concentrated since at least 1970. The so-called Big Three - American, United and Delta - captured an estimated 51.7% of the traffic flown by all U.S. airlines last year. That's up from 46.3% in 1990, according to the Air Transport Association. (For more, see special Traffic package below.) USAIR WILL MATCH UNITED HIKE: USAir said Friday it will match a 2% fare increase United Airlines announced last week. The across-the-board increases will take effect March 3. Delta, American and Northwest say they're still studying the increases. If the higher fares stick, they will be the second 2% boost this year. Analysts said another wave of discounting by troubled airlines could bring fares down again. RAIL IMPROVEMENT FUND PROPOSED: Amtrak President W. Graham Claytor Jr. has proposed legislation to establish a capital improvement trust fund to improve the USA's intercity rail passenger system. Claytor supports a proposal by House Subcommittee on Transportation and Hazardous Materials Chairman Rep. Al Swift, D-Wash., that would allocate part of the deficit reduction fuel tax to a trust fund. GET AWAY FOR WEEKEND: Spas are beginning to offer special weekend packages in recognition of hectic lifestyles, says the March issue of Working Woman. The three-night package at Canyon Ranch in the Berkshires in Massachusetts costs $1,010. The Rowes Wharf Health Club & Spa's weekend retreat in Boston costs $495. Le Meridien Spa in California charges $400; Florida's Doral Saturnia's weekend deal is $1,465. AMEX LOWERS FEE FOR SOME: American Express said Friday it will lower the fee it charges some merchants for processing its charge card. The action follows complaints by a number of stores and restaurants about American Express' high rates. American Express said the adjustments are aimed at improving results of its travel unit, which includes charge cards and travelers cheques. NEW RATES NOT QUOTED: A new American Express price structure will lower fees for some merchants while raising fees for others, depending on the health of the merchant's industry and size of the business. American Express wouldn't say what the new rates are. American Express charges as much as 5% of a transaction to process billings, while Visa and MasterCard charge no more than 4%. TIME FOR ANOTHER CONVENTION: Some in the travel industry think it's time for another Chicago Convention, the meeting 50 years ago that set methods by which governments negotiate fares, routes and other bilateral concerns. "The bilaterals regime has come to the limits of its flexibility," says Congressman James Oberstar, D-Minn. "We need to ... rethink the way we do international aviation trade." PEAK FARE INCREASE POSSIBLE: The Department of Transportation is considering a policy that would let airports charge higher landing fees for peak hours and discount its off-hour fees. Critics say it will most hurt business travelers dependent on peak times. The DOT says the guidelines wouldn't need legislative approval. Charges likely would be passed on to the travelers, as with other costs incurred by carriers. FEWER VISIT ATLANTIC CITY: Atlantic City saw fewer tourists in 1991, city officials say. It's the third straight year of decline for the area. Officials blame the gulf war and the slow economy. But the 3.2% drop to 30.8 million visitors didn't hurt gross gaming revenues of casinos. Those rose 1.35% to $2.99 billion. SPECIAL PACKAGE ON TRAFFIC: OTHER CARRIERS SHRANK OR DIED: The USA's three megacarriers - American, Delta and United - reached their record size of controlling more than half the U.S. market in the same year that Eastern, Pan Am and Midway went out of business. Others, such as Continental and TWA, were shrinking to stay alive. The Big Three's growth is igniting new debates on the health of airline competition. DOMINANCE MEANS HIGHER FARES: The General Accounting Office says fares are 21% higher at airports dominated by one or two airlines than at airports with more competition. But the Air Transport Association says most domestic routes are more competitive now than before deregulation in 1978. The percentage of passengers flying routes dominated by one airline dropped from about 45% in 1978 to about 23% in 1990. FOREIGN CARRIERS ON ALERT: This year, the Big Three are expected to account for 60% of international traffic on U.S. carriers, up from 33% in 1990, says ESG Aviation Services. Others are noticing. Lufthansa wants a new U.S.-German agreement that favors its airline more. British Airways has begun a frequent flier program for U.S. customers, and is negotiating a partnership with KLM Royal Dutch Airways. (End of package.) 24-HOUR TELEPHONE INFORMATION: USA TODAY Weather Hot Line. 95 cents a minute. 1-900-555-5555. Travel Editor: Beth Mann. (1-919-855-3491) Making copies of USA TODAY Update (Copyright, 1992) for further distribution violates federal law. 08:0002240000D0224 WEAT- R C Heavy-rain-to-hit-Texas,-Okla......... A D0224 This article is copyright 1992 Gannett News Service. Redistribution to other sites is not permitted except by arrangement with American Cybercasting Corporation. For more information, send-email to usa@AmeriCast.COM