Business: Cheap Flights

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Europe emulates the U.S.

To most Europeans, train travel has been a way of life. It is fast, efficient and cheap. European air travel, on the other hand, has been fast, efficient and expensive. National air carriers divide up the market and, lacking stiff competition, charge pretty much what they please. Until last month, a 213-mile Paris-London flight cost twice as much as a 205-mile New York-Washington trip.

In a move to attract more nonbusiness customers and to fill half-empty, off-peak-hour flights, European air executives are starting to realize what their American counterparts learned this summer: lower fares lead to more customers and greater profits. Recently British Airways reduced prices as much as 40%, pegging the London-Paris round trip at $92.50, vs. this summer's $154. Lufthansa, Alitalia and KLM next week will reduce fares 15% to 25% on some flights between Germany, Italy and The Netherlands. Air France is also getting into the act with a 40% reduction on some of its round trip Paris-London excursions. Other European carriers are expected to follow suit. Such news may well bring air travel within the budgets of more Europeans, many of whom have never flown.