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Trevor Acy

Trevor Acy's Public Library

Colombia

Looks like just about everything we need!

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Colombia

27 Sep 08

Airline Competition

  • Still, there is reason for concern over airline competition and pricing. Because they are least sensitive to price, business travelers are most susceptible to being charged markups by airlines with dominant market positions and little effective competition. Competition tends to weakest on nonstop routes to and from major hubs such as Pittsburgh, Dallas-Ft. Worth, and Cincinnati. In many of these markets, the hubbing carriers controls 50 percent or more of the local traffic. Fares in these markets—which are often business markets—tend to be higher, on average, than in most other markets.
  • Of particular concern is that the conduct is predatory—intended to suppress competition in order to raise fares well above efficient, competitive levels.

Competition in the Airline Industry

  • Alliances involving code-sharing are in
    many respects the most controversial. They have the potential to be procompetitive
    -- they can create new service, improve existing service, lower costs and increase
    efficiency, all to the benefit of the traveling public. Code sharing agreements
    also have the potential to be anticompetitive. They can result in market allocation,
    capacity limitations, higher fares, or foreclosure of rivals from markets, all
    to the injury of consumers. The ability to distinguish the latter from the former
    is crucial for aviation policy makers and antitrust enforcement authorities.

Special Report 255 - Entry and Competition in the U.S. Airline Industry: Issues and Opportunities

  • Certain characteristics of the industry, however, continue to raise concern. Travelers in many cities with major hub airports continue to have few airlines to choose from when flying in short-haul, nonstop markets, or their "spokes." As a consequence, hubbing carriers often account for 50 percent or more of the local passenger traffic in hub cities. Public discontent over airlines charging higher prices for unrestricted tickets�usually for purchases by time-sensitive business travelers�is most pronounced in these hub cities and other markets in which short-haul service is dominated by one or two carriers. Many new, low-fare carriers have entered such markets, often eliciting sharp price-cutting and other aggressive responses by incumbents, which the new entrants have protested as unfair. Another relatively recent development is that major airlines have formed partnerships to share frequent-flier programs and to coordinate flight schedules, fares, and services through codesharing. Potential benefits and costs are associated with these developments, and the outcome remains unclear but worrisome.
28 Jun 08

Joystiq

  • This may be the final day where we bravely speculate on the still-hidden mysteries of Blizzard's splash page.
21 May 08

Songza: The Internet Jukebox

Review for the internet jukebox, Songza

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songza free musc

Trevor @ MSC

My daily journal of working at McCallum Sweeney Consulting

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internship

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