Business Notes Airlines

"They treat you just like cargo," goes a typical passenger gripe about cheap flights. That bit of hyperbole is getting to be closer to the truth as airlines battle to slash fares and frills. Eastern Airlines announced last week that beginning April 1 it will sell seats on late-night freight flights. The coast-to-coast fare for the "Moonlight Special" will be $98, in contrast to $129 for Eastern's least expensive daytime runs.

The new service will use the airline's regular Airbus A300 passenger jets. Instead of carrying passengers' luggage, though, the cargo bellies will be packed with overnight-delivery packages. The travelers seated in the cabin above may either bring their baggage aboard or check it for an extra $10 a bag. Snacks will be available for $4. All the freight flights will have a middle-of-the-night layover of about one hour in Houston.

Eastern's new service was just the latest salvo in the air-fare wars. Last week People Express dropped its lowest charge from $129 to $99 for some coast- to-coast flights. United and American quickly jumped in with $109 fares. But many tickets have restrictions. Passengers on American, for example, must fly on a Tuesday or Wednesday and pay a 25% penalty if they cancel.