ANNUAL MEETINGS : Domestic Fares Too Low, Texas Air’s Lorenzo Says

Although Texas Air recently announced that it will keep its fares low for the summer, its chairman said that domestic airline fares are “too low.”

Frank Lorenzo, chairman of the company that owns Continental and Eastern airlines, acknowleged that fares generally would “rise overnight” if Texas Air raises its prices. Asked if he plans to boost Texas Air’s fares, he did not answer directly, saying: “There are different prices for different seasons.”

Lorenzo made his comments at Texas Air’s annual meeting, which was held in the employee cafeteria of Continental’s offices at Los Angeles International Airport.

Texas Air, headquartered in Houston, sparked a fare war in January when it slashed ticket prices by as much as 40% below so-called supersaver fares. As previously reported, Texas Air is continuing its so-called maxsavers through the summer, but at slightly higher prices and with tighter restrictions.

The new maxsaver prices, effective today, range between $19 and $139.