Airline Pricing

• Not fully determined by demand & supply due to

  • Unfair Competition
  • Regulation

• Why Regulate Air Fares ?

  • Maintain public service requirements and safety
  • Avoid under-cutting by major players
  • Avoid cut-throat competition leading to bankruptcies and chaos

• Charter Services, originally meant for

  • Unscheduled, non-advertised, non-travel purposes
  • Members only, with at least six months standing

But the above have been grossly abused !

• Offer upto 65% lower fares compared to scheduled flights
• Operate at a load factor of nearly 100%

Previous slide

Next slide

Back to first slide

View graphic version