American to Match Lower Fares in O.C. : Airlines: The carrier will be shaving about half off its minimum one-way price to San Jose to compete with Southwest.

American Airlines said Wednesday that it will match Southwest Airlines’ announced $69 and $49 fares from John Wayne Airport to San Jose when the two carriers begin competing next month.

But an American Airlines spokesman said that the carrier yet to decide whether to pull off the route altogether.

“We are evaluating the marketplace and have not made any decisions at this point,” spokesman Al Becker said.

San Jose has been a major destination for American Airlines. In the past, though, it has sometimes dropped flights from its schedule rather than try to compete with Southwest’s lower-cost structure.

American, which is based in Dallas, has stayed mum about its plans since Southwest announced last month that it would start eight daily round-trips from John Wayne for $69 each way, or $49 for an advance purchase ticket.

The entry of Southwest, which is also based in Dallas, has been long awaited in Orange County because of its reputation for offering low fares. It will also be offering seven round-trips a day to Oakland, in addition to the two daily round-trips to Salt Lake City it is picking up from its recent acquisition of Morris Air Service.

“It’s not surprising,” said Southwest spokesman Ed Stewart of American’s decision. “We come into a market and the fares, of course, drop.”

By matching Southwest’s fares, American will be shaving about half off its everyday minimum one-way fare of $119 or more. Becker said the new fares will take effect May 26--the day Southwest starts service from John Wayne--and can be booked now.

American offers nine daily round-trips from Orange County to San Jose at present.

Alaska Airlines, which will compete against Southwest on the John Wayne to Oakland run, said it is still evaluating whether to match Southwest’s proposed $69 fare. Alaska, based in Seattle, offers five daily round-trips.