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Economics of Airline Pricing
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Airline pricing is a topic that attracts widespread academic and public interest. The ten papers collected in this volume each offer valuable insights into this complex field, either by directly analysing pricing practices, or by exploring topics that have clear implications on how airlines set fares. Altogether, they offer a multifaceted view of an industry shaped by constant change and intense competitive pressures. The past twenty five years the United States airline industry have seen unprecedented consolidation of legacy carriers, as well as the growth of low-cost carriers. A wave of mergers among legacy carriers have reshaped the competitive landscape, whilst low-cost carriers have continued to expand their market presence by challenging traditional pricing models. Joint venture agreements and partnerships with regional carriers have impacted fares. Courts have also undone a joint venture agreement. These structural shifts have influenced everything from the existence of a hub premium to revenue management strategies to route decisions, ancillary fee structures, and consumer expectations. By examining these developments from a range of analytical perspectives, this volume highlights the enduring complexities of airline pricing and the evolving forces that continue to shape it.
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