Airlines continue to cut flights, keep airfares up

Discussion in 'General Discussion | Travel' started by uggboy, Sep 18, 2011.  |  Print Topic

  1. uggboy
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    uggboy Gold Member

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  2. MSPeconomist
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    MSPeconomist Gold Member

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    This is generally what (other things being equal) microeconomic theory and game theory would predict as the result of mergers.
     
    RichardInSF and uggboy like this.
  3. RestlessLocationSyndrome
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    RestlessLocationSyndrome Silver Member

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    Saw this article as well... Can't say I'm surprised to hear this. Guess we'll see if any of the airlines decide to game each other by not decreasing capacity on specific routes to maintain high demand and lower pricing.

    I didn't see any mention of SW. What are they doing? If they aren't cutting capacity, at the end of the day... legacy carriers could just be making it more attractive for SW to enter specific markets/routes.
     

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