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Is There Any Competition On US Aviation?  
User currently onlineEL-AL From Israel, joined Oct 2001, 1295 posts, RR: 5
Posted (1 year 1 month 3 weeks 1 day 8 hours ago) and read 4338 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, 21530 posts, RR: 55
Reply 1, posted (1 year 1 month 3 weeks 1 day 8 hours ago) and read 4300 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, 3803 posts, RR: 29
Reply 2, posted (1 year 1 month 3 weeks 1 day 7 hours ago) and read 4137 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, 657 posts, RR: 1
Reply 3, posted (1 year 1 month 3 weeks 1 day 7 hours ago) and read 4088 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 offlineDiamondFlyer From United States of America, joined Oct 2008, 1517 posts, RR: 3
Reply 4, posted (1 year 1 month 3 weeks 1 day 6 hours ago) and read 4033 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


User currently offlineRDH3E From United States of America, joined Mar 2011, 1621 posts, RR: 3
Reply 5, posted (1 year 1 month 3 weeks 1 day 6 hours ago) and read 3998 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, 15719 posts, RR: 26
Reply 6, posted (1 year 1 month 3 weeks 1 day 4 hours ago) and read 3869 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, 6539 posts, RR: 9
Reply 7, posted (1 year 1 month 3 weeks 1 day 4 hours ago) and read 3823 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, 973 posts, RR: 0
Reply 8, posted (1 year 1 month 3 weeks 1 day 4 hours ago) and read 3761 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, 7125 posts, RR: 9
Reply 9, posted (1 year 1 month 3 weeks 1 day 4 hours ago) and read 3739 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, 2536 posts, RR: 14
Reply 10, posted (1 year 1 month 3 weeks 1 day 4 hours ago) and read 3737 times:

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

User currently offlineDiamondFlyer From United States of America, joined Oct 2008, 1517 posts, RR: 3
Reply 11, posted (1 year 1 month 3 weeks 13 hours ago) and read 3455 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


User currently onlineEL-AL From Israel, joined Oct 2001, 1295 posts, RR: 5
Reply 12, posted (1 year 1 month 3 weeks 11 hours ago) and read 3369 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, 3392 posts, RR: 5
Reply 13, posted (1 year 1 month 3 weeks 11 hours ago) and read 3340 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, 474 posts, RR: 0
Reply 14, posted (1 year 1 month 3 weeks 11 hours ago) and read 3324 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, 7511 posts, RR: 24
Reply 15, posted (1 year 1 month 3 weeks 11 hours ago) and read 3316 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, 233 posts, RR: 0
Reply 16, posted (1 year 1 month 3 weeks 10 hours ago) and read 3141 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, 20394 posts, RR: 62
Reply 17, posted (1 year 1 month 3 weeks 10 hours ago) and read 2958 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, 3029 posts, RR: 4
Reply 18, posted (1 year 1 month 3 weeks 8 hours ago) and read 2370 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, 5621 posts, RR: 6
Reply 19, posted (1 year 1 month 2 weeks 6 days 23 hours ago) and read 2147 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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