The Analytical Report of a study of airline pricing was conducted as part of a broader assessment of airline competition since deregulation. The study documents and analyzes the pricing behavior of the domestic airline industry currently and over time as it relates to readily measurable determinants of price such as distance, density, and number of competitors. The effect of hub concentration on airline pricing behavior is examined. The implications of yield management systems for pricing and competition are also reviewed. The Analytical Report is divided into four parts, with each part emphasizing the years 1979, 1984, and 1988. Part I addresses general fare levels and structure, noting the effects of number of competitors and their market shares, as well as how hubbing affects price and the availability of discount fares. Part II provides a detailed comparison of fares and yields, by hub size. Part III is an analysis of the relationship of fares to exit and entry of competitors. Part IV is a brief review of revenue management systems used by the domestic airlines in recent years, and the competitive implications of those systems.


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    Title :

    Secretary's Task Force on Competition in the U.S. Domestic Airline Industry: Pricing. Volume 1


    Publication date :

    1990


    Size :

    200 pages


    Type of media :

    Report


    Type of material :

    No indication


    Language :

    English