Originally Posted by spampurse

United's fares tumble as it battles I-Air
Ben Mutzabaugh, USA Today

As first reported in Today in the Sky, it didn't take United long to match Independence Air's prices on its new West Coast flights. How dramatic was the change? The Washington Post said "Within hours, United's fare had tumbled 84.5%." The Post says on the Monday morning I-Air announced its new routes and fares, United had listed a $1,212 fare for nonstop flights between Washington Dulles and San Diego for travel May 1-3. The same itinerary on I-Air was just $188. Despite helping to push fares down, some wonder whether I-Air will be able to siphon passengers from United. "United, they're in bankruptcy, but they do have frequent-flier miles and all kinds of things they can offer," said Wall Street analyst Betsy Snyder of Standard & Poor's. "If that's the case, what's the incentive to fly Independence Air?" However, some argue fliers will lose in the long run if they don't jump to the new carrier. If United drives I-Air out of the market, fares will likely rise to pre-I-Air levels.