Discounting risks permanent harm to premium travel, critics say

08/25/2009 | NYTimes.com

As premium travel plunges, international airlines are slashing fares in business and first class, putting a strain on their balance sheet and possibly endangering their business model. Some analysts say the discounts could permanently damage the premium product, leading more business travelers to opt for cheaper seats. Because of their greater proportion of domestic flights, U.S. carriers are somewhat sheltered from the trend, The New York Times reports.

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