Update: $2 R/t Airfares

JAMAKE1

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Feb 15, 2003
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SFO to DAB
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Got a response from WHQ...thought I would pass it on...

Q.) On Saturday April 16, 2005 our Star Alliance and code-share partner, USAirways inadvertently input $2.00 fares into their computer system, which resulted in savvy online customers being able to purchase confirmed tickets on numerous online travel sites. As a result of the US-UA code share, several customers were able to purchase confirmed tickets over the course of several months on US Airways code-share flights operated by United. Tickets were booked and ticketed at both F and Y fares for as little as $36.00 R/T. I would like to know what affect this pricing error by USAir will have on United's revenue over the next two quarters and if United will be able to recoup some of the losses attributed to this pricing error. Your response is greatly appreciated.

A.) We are working with US Airways to identify tickets that were mistakenly priced and sold by US Airways on United, via our code share agreement. We are quantifying the revenue loss associated with these tickets and will be submitting that figure to US Airways for reimbursement. This will not have an impact on our revenue over the next two quarters as our initial review suggests that it's not a big impact. US Airways has been very willing to work with us on quantifying the impact and making amends.
 

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