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USAir limits deals; airline reduces contracts, but denies foregoing all corporate negotiations.

Publication: Business Travel News
Publication Date: 15-MAY-06 		Format: Online
Delivery: Immediate Online Access

Article Excerpt
Positioning itself as a low-cost carrier since last year's merger with America West Airlines, US Airways is significantly reducing the number of contracts offered to corporations and has made deep cuts to its salesforce. While several US Airways clients from large companies said the move represents a degree of abandonment of the carrier's corporate base, the airline said that as an LCC it is offering fares that are historically low--with or without a contract.

One corporate travel airline analyst said US Airways has reduced the number of negotiated contracts by the thousands, but US Airways asserted it is not adopting the model of some low-cost carriers that foregoes corporate negotiations. "We're going to continue to have many hundreds of corporate contracts," said Travis Christ, US Airways vice president of sales, marketing and distribution, "so it's not that we won't have deals with individual companies. We'll have a lot, but for the rest of...

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