Launch of Virgin America sparks fare war

10/3/2007 | USA Today

Budget airline Virgin America's entrance into the U.S. market may push down earnings at rival airlines while driving down ticket prices on certain routes, such as the San Francisco-to-Washington, D.C., route. JetBlue Airways and Southwest Airlines, both low-cost carriers, are also participating in the war by adding capacity and cutting fares. "It's pretty apparent that the airlines are worried," said Rick Seaney, chief executive FareCompare.com.

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