Remember the golden age of the airline industry when they provided free meals and metallic "wings" for young travelers? Better yet, think back to recent history when charging for baggage was almost laughable. Fast forward to 2009 - plane crashes and hidden luggage fees have been reported heavily in the media, and some reputable airlines have folded. Clearly, the golden age is over. However, in an attempt to entice travelers to fly the friendly skies, many airlines are slashing their fees. But, according to an article in the Wall Street Journal, this may not be enough.

Tough Times

Consider this: Suppose you live in Chicago, but would like to schedule an in-person meeting with a client in Sydney, Australia. Last year, a round-trip ticket from the Windy City to Sydney would put your company out more than $2,000. Not anymore. Now, you can purchase a similar ticket for less than $1,000. Sounds too good to pass up, right? Not so fast, many reluctant business professionals say.

With the economy taking a nosedive, companies across the nation are looking to curb spending. And, one of the first ways they often cut back is by putting a moratorium on business travel. After all, with the widespread availability of teleconferencing and webinars, face-to-face communication isn't always necessary. Therefore, even though the airline industry is trying to lure people with ultra-low fares, many companies and individuals aren't persuaded.

So, how much are airlines slashing their rates? To put it into perspective, AirTran Airways recently announced that it will start offering one-way tickets between U.S. cities for $39. And, according to Tom Parsons, chief executive of the budget travel website, Bestfares.com, travelers can now fly roundtrip from New York City to Honolulu for $539. Only one year ago, that same flight cost $1,098! "I don't remember a year other than 2001 that we've seen this kind of commotion in airfares," Parsons says.

Unfortunately, according to Naren Nath, president of the discount airfare search-engine company, CFares, airlines aren't seeing the results they anticipated. Although the number of hits Nath's site received increased 40 percent between November and February - when fares dropped drastically - the sales actually decreased by 43 percent."Less and less people are booking, even though more and more people are looking," Nath says.

Up for Discussion

I personally saw this fact played out recently at a work conference. In past years, the tradeshow attracted approximately 20,000 professionals from across the nation. This year? Not so much. In fact, the attendance was down so drastically that the association sponsoring the conference almost canceled it. I spoke with one of the tradeshow planners about the lack of attendees, and she informed me that companies simply wouldn't pay for their employees' airfare. Even though the airline rates were down, businesses wouldn't fork over the funds.

So, has your company put a moratorium on business travel? Do you think the reduced fares will help spur the economy and increase international and domestic travel? Tell us what you think!