EL-AL
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Is There Any Competition On US Aviation?

Mon Jun 10, 2013 7:21 pm

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.

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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?
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Mir
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RE: Is There Any Competition On US Aviation?

Mon Jun 10, 2013 7:36 pm

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

-Mir
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Tango-Bravo
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RE: Is There Any Competition On US Aviation?

Mon Jun 10, 2013 8:46 pm

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.
 
daedaeg
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RE: Is There Any Competition On US Aviation?

Mon Jun 10, 2013 9:03 pm

Prices wouldn't be that low if there was no competition. $128 one way from Boston to Phoenix is a pretty darn good price.
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DiamondFlyer
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RE: Is There Any Competition On US Aviation?

Mon Jun 10, 2013 9:27 pm

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.

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Rdh3e
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RE: Is There Any Competition On US Aviation?

Mon Jun 10, 2013 9:40 pm

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.
 
BMI727
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RE: Is There Any Competition On US Aviation?

Mon Jun 10, 2013 11:09 pm

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.
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Aesma
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RE: Is There Any Competition On US Aviation?

Mon Jun 10, 2013 11:22 pm

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.
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MIflyer12
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RE: Is There Any Competition On US Aviation?

Mon Jun 10, 2013 11:51 pm

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.
 
flymia
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RE: Is There Any Competition On US Aviation?

Mon Jun 10, 2013 11:59 pm

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.
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Dalmd88
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RE: Is There Any Competition On US Aviation?

Tue Jun 11, 2013 12:00 am

You could do the train/bus route for $306. That gives you a sixty hour travel time.
 
DiamondFlyer
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RE: Is There Any Competition On US Aviation?

Tue Jun 11, 2013 3:03 pm

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
From my cold, dead hands
 
EL-AL
Topic Author
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RE: Is There Any Competition On US Aviation?

Tue Jun 11, 2013 4:12 pm

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.
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jfklganyc
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RE: Is There Any Competition On US Aviation?

Tue Jun 11, 2013 4:18 pm

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!
 
MountainFlyer
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RE: Is There Any Competition On US Aviation?

Tue Jun 11, 2013 4:23 pm

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.
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PHLBOS
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RE: Is There Any Competition On US Aviation?

Tue Jun 11, 2013 4:25 pm

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.
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robsaw
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RE: Is There Any Competition On US Aviation?

Tue Jun 11, 2013 5:33 pm

Just another example of people continually confusing price-matching (legal) with price-fixing (illegal).
 
AeroWesty
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RE: Is There Any Competition On US Aviation?

Tue Jun 11, 2013 5:53 pm

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.
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catiii
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RE: Is There Any Competition On US Aviation?

Tue Jun 11, 2013 7:32 pm

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.
 
Gemuser
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RE: Is There Any Competition On US Aviation?

Wed Jun 12, 2013 4:36 am

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.

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