ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Tuesday, August 20, 1996 TAG: 9608200060
SECTION: BUSINESS PAGE: B-6 EDITION: METRO
You want to take off? Air fares already have
HOUSTON - Major airlines, confident that strong fall bookings will hold up, are raising fares 10 percent to offset the return of a federal airline tax.
Continental Airlines started the increase, and the rest of the industry quickly went along. The higher fares are for unrestricted coach tickets bought 21 days in advance.
``There's a multitude of reasons,'' said Ned Walker, a Continental spokesman, noting that costs associated with stepped-up security, the return of the ticket tax and a new Federal Aviation Administration rule expected to increase delays at airports prompted the increase in ticket prices.
``And there's a classic case of supply and demand, based on fall bookings,'' he said.
A sample fare change for Continental will mean a $488 round-trip ticket from New York to Los Angeles will now cost $537.
The airline industry has enjoyed a break from the ticket tax after it expired Dec. 31. But the reinstatement of the excise tariff is included in the minimum wage package expected to be signed by President Clinton today.
American, Delta, United and Northwest followed Continental's lead and raised their fares also. United spokeswoman Mary Jo Holland said the increases are ``just the nature of the industry.''
Maverick airline Southwest, meanwhile, is bucking the trend and reinstating its buy one, get one free offer.
- Associated Press
Rates rise on short-term T-bills
The Treasury Department on Monday sold $12.7 billion in three-month bills at an average discount rate of 5.06 percent, up from 5.04 percent last week. Another $12.5 billion was sold in six-month bills at an average rate of 5.13 percent, up from 5.08 percent.
The three-month bill rate was the highest since they sold for 5.08 percent Aug. 5. The six-month bill rate was the highest since they averaged 5.34 percent July 29.
In a separate report, the Federal Reserve said Monday that the average yield for one-year Treasury bills, the most popular index for making changes in adjustable-rate mortgages, rose to 5.62 percent last week from 5.60 percent the previous week.
- Associated Press
Martin Bros. secures contracts
Martin Bros. Contractors Inc. of Roanoke said it has been awarded two construction contracts.
Reconstruction and renovation of Breckinridge Middle School on Williamson Road for the Roanoke school system. The project consists of a 22-classroom addition with 10 technology and science labs, teacher workrooms and an elevator. It also includes renovation of the gymnasium and main building facade, and alterations to the interior. Cost of the project is $6.1 million.
Expansion of the existing facility for Noble-Met Ltd., a medical products maker, at 200 S. Yorkshire St. in Salem. The project consists of a 20,000-square-foot metal building addition designed by Kinsey Shane & Associates. The contract value is $937,000.
- Staff report
LENGTH: Medium: 65 linesby CNB