Comment Re:Cheaper (Score 1, Informative) 349
No. The core problem of the airline industry in the US is that there are too many airlines serving each origin destination pair. Such that no airline is able to maintain a reliably profitable margin before others try to horn in and lower the price for fares.
In an industry where airplanes are very capital intensive and inflexible to acquire/get rid of, and there is very low cost to supplying additional seats to a market, any market participant will be tempted to make marginal costs by putting more availability out there. This depresses ticket prices (to the benefit of the public), but drives their industry into the ground.
Air travel is a great business for everyone except the airlines. If we want to have stable airlines, reasonable prices (which may not mean low prices), and quality service, the harsh truth is that the US will have to let a few airlines die, and not let new entrants take their place. You cannot have all of these things without doing that.
On the topic of this fare exploit, airlines have these rules so they can offer different prices to different markets. If their mechanisms for keeping people from exploiting these differences are disallowed or defeated, I think one predictable outcome is that fares rise for everyone instead.
In an industry where airplanes are very capital intensive and inflexible to acquire/get rid of, and there is very low cost to supplying additional seats to a market, any market participant will be tempted to make marginal costs by putting more availability out there. This depresses ticket prices (to the benefit of the public), but drives their industry into the ground.
Air travel is a great business for everyone except the airlines. If we want to have stable airlines, reasonable prices (which may not mean low prices), and quality service, the harsh truth is that the US will have to let a few airlines die, and not let new entrants take their place. You cannot have all of these things without doing that.
On the topic of this fare exploit, airlines have these rules so they can offer different prices to different markets. If their mechanisms for keeping people from exploiting these differences are disallowed or defeated, I think one predictable outcome is that fares rise for everyone instead.