New U.S. Airline Fare Policy Is Anticonsumer In The Extreme; Europe Is Next!

Published on : Friday, April 8, 2016

downloadAmerican Airlines, Delta Air Lines and United Airlines may have recently coordinated on a complicated and comprehensive scheme to change airfare rules that have the effect of driving up the price of an airline ticket on unsuspecting consumers by as much as a factor of seven.

 

How The Policy Change Works

 

The policy change bars customary multi-city ticketing using the lowest available fare on each segment. Instead, the new policy combines the highest refundable fares available on each segment and returns a round-trip single price that is substantially higher than if a consumer purchased separate one-way fares.

 

Why This Policy Is Outrageous

 

Since the Big Three secured grants of antitrust immunity for their global alliances, and consolidated the domestic industry, they have worked hammer and tongs to reduce price transparency, undermine their regulator and block foreign carrier new entry.

 

This fare-rule change appears worse than tacit coordination as there was no public announcement and airlines don’t usually spend their time watching the Airline Tariff Publishing Company (ATPCO) feeds for such very infrequent changes. In the off chance two of the three airlines were monitoring ATPCO and spotted the change, which is complex and far-reaching, they would have likely needed considerable time to analyze the competitive move and decide whether to match.

 

Normally, with a policy change of this magnitude, airlines would watch how the market responds before taking a risk. Moreover, because it was implemented secretly, there was no immediate threat of revenue loss, and thus no need to rush to match. Taken together, this is why Business Travel Coalition asked the U.S. Department of Justice to add this industry development to its ongoing investigation into collusive airline agreements.

Tags: ,

Leave a Reply

Your email address will not be published. Required fields are marked *

*

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

arrow2Follow TTW
 
facebook-logo  twitter-logo  LinkedIn_logo  stumbleupon-logo   rss_logo 
ttw_blogger_logo  ttw_blogger_logo  ttw_blogger_logo

ADVERTISEMENT

  • 03 itb-asia 2017
  • 04 Imex America 2017
  • 10 Globalwellnesssummit 2017
  • 10 thehotelshow 2017
  • 11 hospitalityaward 2017
  • 12 theleisureshow 17
  • 12 TTF17
  • 13 Frontiers Forum 2017
  • 14 bltm 2017
  • 14 patatravelmart 2017
  • 14 Seatrade-Europe 2017
  • 15 amsummit-ind 2017
  • 15 leisure 17
  • 16 Aviation Festival 2017
  • 16 OTDYKH 2017
  • 16 SKAL 17
  • 17 thincindonesia 2017
  • 17 worldmiceday 2017
  • 18 worldmiceday 2017
  • 19 IITM
  • 19 itehcmc 2017
  • 19 TTG Incontri 2017
  • 20 hmasummit  2017
  • 21 hoteltechhk 17
  • 43 PATA

TRAVEL INDUSTRY EVENTS

Get our toolbar!
Review www.travelandtourworld.com on alexa.com