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Justice Dept. Opens Anti-Trust Investigation Over Airline ‘Capacity Discipline’
DSC_0441 (1)The U.S. Department of Justice has opened an investigation into possible collusion amongst major airlines in the United States to limit the number of available seats and thereby maintain high ticket prices.... (www.frequentbusinesstraveler.com) 更多...
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It is about sending signals and the me-too every time fares are adjusted... If there is merit once DOJ gets the data, then it will proceed... If the airlines are not colluding, then it stops and sends a signal to the oligopoly to behave... Unlike the auto industry, we do not have global competition to keep supply & demand in balance...
wait a minute... rant the airlines charging about the same fares they we charging in the 80's & 90's.. what ever happen to inflation folks..... also don't be fooled by southwest and not charging for luggage.. if you check any competing fares in most cases you will pay more on southwest. hint...baggage fees included in the fare,, da..
Well, up until a few years ago "baggage fees" were included in the fare.
You, as the customer, either like or dislike the nickel/dime approach of pay for just what you use and not a penny more.
For me, I'd prefer the airlines to properly price their product, in a consistent manner. Price it to make a decent profit at, say 85% load levels while providing quality service and an enjoyable experience on board. I'd be willing for everyone to pay a bit more, most people on the flight paying about the same fare, and periodically have some extra room on the plane not stuffed with a body everywhere they could.
Baggage fees and 'better seat' fees are ridiculous scams, given that probably half the bags in the hold are gate-checked for free these days anyway (or free to an airline-affinity credit card holder); and many in those paid-for seats are also not paying for them because the airline sold them a ticket (to fill the plane to capacity), wouldn't pre-assign a 'crap' seat (because they're full already), and have to give them something when they get to the gate.
You, as the customer, either like or dislike the nickel/dime approach of pay for just what you use and not a penny more.
For me, I'd prefer the airlines to properly price their product, in a consistent manner. Price it to make a decent profit at, say 85% load levels while providing quality service and an enjoyable experience on board. I'd be willing for everyone to pay a bit more, most people on the flight paying about the same fare, and periodically have some extra room on the plane not stuffed with a body everywhere they could.
Baggage fees and 'better seat' fees are ridiculous scams, given that probably half the bags in the hold are gate-checked for free these days anyway (or free to an airline-affinity credit card holder); and many in those paid-for seats are also not paying for them because the airline sold them a ticket (to fill the plane to capacity), wouldn't pre-assign a 'crap' seat (because they're full already), and have to give them something when they get to the gate.
Just start use an A380 on transcontinental flights
Trimming unused capacity means that each load is more profitable. It took years to get the capacity sized to the market after the bust. Now that the economy is improving, some planes are SRO. Time to start thinking about capacity expansion. How long will that take? Extra seats are not like hooking on a new Pullman car.
So Congress wants to prove its worth and have a new investigation. Will they find any collusion? Probably not, but how many Benghazi probes have there been.