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Is There Any Competition On US Aviation?  
User currently onlineEL-AL From Israel, joined Oct 2001, 1245 posts, RR: 5
Posted (10 months 2 weeks 2 hours ago) and read 4287 times:

I am planning a visit to north America in 4 months. After booking flights from Israel to YYZ and from LAX back to TLV ($968) I am now looking for a flight from Boston to Phoenix in October.

http://img838.imageshack.us/img838/378/bosphz.jpg

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Just take a look on this expedia page: all 3 major carriers have the exact same price, right on the dime! No matter which hour is chosen. Is this a free and deregulated market? Is the only real competition come from Southwest? Or am I missing something?


"In our country, those who do not believe in miracles are irrational" - David Ben Gurion.
19 replies: All unread, jump to last
 
User currently offlineMir From United States of America, joined Jan 2004, 21105 posts, RR: 56
Reply 1, posted (10 months 2 weeks 2 hours ago) and read 4249 times:

Everyone is trying to match everyone else's price: that's competition.

-Mir



7 billion, one nation, imagination...it's a beautiful day
User currently offlineTango-Bravo From United States of America, joined Jun 2001, 3788 posts, RR: 29
Reply 2, posted (10 months 2 weeks 1 hour ago) and read 4086 times:

Am surprised to see fares as low as they are in the BOS-PHX market...even for October (a relatively slow travel month in the U.S.) and with 4-months advance purchase. If your plans are firm at this point, grab it while you can!

Even if meaningful pricing competition is largely-to-entirely lacking in many U.S. city pairs, serious competition appears to be alive and well in the BOS-PHX market.


User currently offlinedaedaeg From United States of America, joined Feb 2003, 656 posts, RR: 1
Reply 3, posted (10 months 2 weeks ago) and read 4037 times:

Prices wouldn't be that low if there was no competition. $128 one way from Boston to Phoenix is a pretty darn good price.


Everyday you're alive is a good day.
User currently onlineDiamondFlyer From United States of America, joined Oct 2008, 1400 posts, RR: 3
Reply 4, posted (10 months 2 weeks ago) and read 3982 times:

Quoting daedaeg (Reply 3):
Prices wouldn't be that low if there was no competition. $128 one way from Boston to Phoenix is a pretty darn good price.

Exactly. Doesn't matter what car you have, you are going to spend more than that in gasoline. A bus ticket is probably 2X that as well. Don't even bother pricing Amtrak, it's probably 4x as expensive.

-DiamondFlyer



Rock Chalk Jayhawk
User currently offlineRDH3E From United States of America, joined Mar 2011, 1459 posts, RR: 2
Reply 5, posted (10 months 2 weeks ago) and read 3947 times:

Quoting DiamondFlyer (Reply 4):
Exactly. Doesn't matter what car you have, you are going to spend more than that in gasoline. A bus ticket is probably 2X that as well. Don't even bother pricing Amtrak, it's probably 4x as expensive.

5.5 cents per mile. No airline is making money on that fare, that is for sure.


User currently offlineBMI727 From United States of America, joined Feb 2009, 15489 posts, RR: 26
Reply 6, posted (10 months 1 week 6 days 22 hours ago) and read 3818 times:

Quoting EL-AL (Thread starter):
all 3 major carriers have the exact same price, right on the dime!

Go find a corner with three gas stations and see what the prices are like.



Why do Aerospace Engineering students have to turn things in on time?
User currently offlineAesma From France, joined Nov 2009, 6110 posts, RR: 9
Reply 7, posted (10 months 1 week 6 days 22 hours ago) and read 3772 times:

I notice all options take 8 hours or more.

Also, could have something to do with that IP tracking stuff, but I haven't followed it too closely.



New Technology is the name we give to stuff that doesn't work yet. Douglas Adams
User currently offlineMIflyer12 From United States of America, joined Feb 2013, 790 posts, RR: 0
Reply 8, posted (10 months 1 week 6 days 21 hours ago) and read 3710 times:

Quoting Aesma (Reply 7):
I notice all options take 8 hours or more.

Orbitz (or the OP) isn't showing all options. Both B6 and US operate non-stops BOS-PHX, but it's still a 2300 mile flight and scheduled at 5:25 minimum westbound.


User currently offlineflymia From United States of America, joined Jun 2001, 7006 posts, RR: 9
Reply 9, posted (10 months 1 week 6 days 21 hours ago) and read 3688 times:

Seems like they are competing pretty well with that price!

You will find this plenty. At the same time when I wanted to fly MIA-SDF a few months ago AA wanted $1,000 for the trip DL wanted it for around $450.



"It was just four of us on the flight deck, trying to do our job" (Captain Al Haynes)
User currently offlinedalmd88 From United States of America, joined Jul 2000, 2506 posts, RR: 14
Reply 10, posted (10 months 1 week 6 days 21 hours ago) and read 3686 times:

You could do the train/bus route for $306. That gives you a sixty hour travel time.

User currently onlineDiamondFlyer From United States of America, joined Oct 2008, 1400 posts, RR: 3
Reply 11, posted (10 months 1 week 6 days 6 hours ago) and read 3404 times:

Quoting RDH3E (Reply 5):
5.5 cents per mile. No airline is making money on that fare, that is for sure.

Exactly my point, but yet people will complain that fares aren't low enough.

-DiamondFlyer



Rock Chalk Jayhawk
User currently onlineEL-AL From Israel, joined Oct 2001, 1245 posts, RR: 5
Reply 12, posted (10 months 1 week 6 days 5 hours ago) and read 3318 times:

Quoting DiamondFlyer (Reply 11):
Exactly my point, but yet people will complain that fares aren't low enough.

I'm not complaning about the price itself, I mentioned the fact that the price is identical on competing airlines!

In Israel by the way, price comparison is a criminal offence, airlines matching prices in Israel can be finned in millions.



"In our country, those who do not believe in miracles are irrational" - David Ben Gurion.
User currently onlinejfklganyc From United States of America, joined Jan 2004, 3177 posts, RR: 5
Reply 13, posted (10 months 1 week 6 days 5 hours ago) and read 3289 times:

Look how low it is. If that isn't competition, what is? Do you think any airline wants to charge that? They have to to be competitive!

User currently offlineMountainFlyer From United States of America, joined Jul 2005, 473 posts, RR: 0
Reply 14, posted (10 months 1 week 6 days 5 hours ago) and read 3273 times:

Quoting EL-AL (Reply 12):
In Israel by the way, price comparison is a criminal offence, airlines matching prices in Israel can be finned in millions.

Collusion is illegal in the US, but that usually involves companies agreeing behind the scenes to set prices at a certain level, which is generally anti-competitive and results in higher prices. There's nothing wrong with matching your competitors price in the open market, however.



SA-227; B1900; Q200; Q400; CRJ-2,7,9; 717; 727-2; 737-3,4,5,7,8,9; 747-2; 757-2,3; 767-3,4; MD-90; A319, 320; DC-9; DC-1
User currently offlinePHLBOS From United States of America, joined Mar 2004, 7482 posts, RR: 24
Reply 15, posted (10 months 1 week 6 days 5 hours ago) and read 3265 times:

Quoting MIflyer12 (Reply 8):
Orbitz (or the OP) isn't showing all options. Both B6 and US operate non-stops BOS-PHX, but it's still a 2300 mile flight and scheduled at 5:25 minimum westbound.

It's also worth noting that one can also fly BOS-PHX via WN w/a connection as well (as we all know, WN does not advertise/sell their flight (excluding FL flights) on Orbitz, Expedia, etc.).

Long story short, one has two LFC options for a BOS-PHX intinerary: one nonstop via B6, the other w/WN connections.



"TransEastern! You'll feel like you've never left the ground because we treat you like dirt!" SNL Parady ad circa 1981
User currently offlinerobsaw From Canada, joined Dec 2008, 227 posts, RR: 0
Reply 16, posted (10 months 1 week 6 days 4 hours ago) and read 3090 times:

Just another example of people continually confusing price-matching (legal) with price-fixing (illegal).

User currently offlineAeroWesty From United States of America, joined Oct 2004, 20322 posts, RR: 63
Reply 17, posted (10 months 1 week 6 days 3 hours ago) and read 2907 times:

Quoting EL-AL (Thread starter):
Is this a free and deregulated market? Is the only real competition come from Southwest?

When I first read this thread last night I checked fares, and B6 was offering their nonstop on 10/22 for $195. Today WN announced a 72-hour sale, with prices as low as $153 for BOS-PHX with a stop, but no plane change (I didn't check WN last night).

The fare on B6 this morning for their nonstop on 10/22? $165. US is so far unchanged on their nonstops at $225.

Competition is alive and well.



International Homo of Mystery
User currently offlinecatiii From United States of America, joined Mar 2008, 2802 posts, RR: 3
Reply 18, posted (10 months 1 week 6 days 2 hours ago) and read 2319 times:

Quoting EL-AL (Thread starter):
Just take a look on this expedia page: all 3 major carriers have the exact same price, right on the dime! No matter which hour is chosen. Is this a free and deregulated market? Is the only real competition come from Southwest? Or am I missing something?

You're missing something. You're implying that the airlines are colluding on price, which is illegal. They are competing on price, which is the basic tenet of a free market. I'm not sure why you think Southwest is the "only real competition." I don't see them listed but I would imagine their price point was similar, if not higher.


User currently offlinegemuser From Australia, joined Nov 2003, 5554 posts, RR: 6
Reply 19, posted (10 months 1 week 5 days 17 hours ago) and read 2096 times:

Quoting robsaw (Reply 16):
Just another example of people continually confusing price-matching (legal) with price-fixing (illegal).

Depends on your jurisdiction. In Australia price matching CAN be illegal depending on circumstances. Just a sidelight, obviously not relevant to the Ops discussion.

Gemuser



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