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Try the fact that the fuel efficiency saves the airline lots of $$$ on fuel, but yet they haven't reduced fares any. Go figure.
by odorousrex 8y ago
Try the fact that the fuel efficiency saves the airline lots of $$$ on fuel, but yet they haven't reduced fares any.
Go figure.
- jcoffland 8y agoSince airlines have an oligopoly, fares are not based on the cost to the airline but on the price on the supply and demand curve that yields maximum profit. In other words, the maximum price that enough people are willing to pay. If there were more competition in the market the price would be closer to the airline's actual cost.
- sokoloff 8y agoHaven’t they? Domestic and long-haul flights seem much cheaper to me than ever.
- alexis_fr 8y agoReduced fuel is done with an upfront investment. Which always makes me wonder, since every penny of the investment money goes to researchers, facilities and material which themselves aren’t more economic in emissions than fuel itself, then does it really save on emissions...
- joshe 8y agoNope, airfares bounce around and have been going down for the last 8 years. https://fred.stlouisfed.org/series/CUSR0000SETG01 https://fred.stlouisfed.org/series/CUSR0000SETG01 Partly as fuel prices go down: https://fred.stlouisfed.org/graph/?g=eaB3 https://fred.stlouisfed.org/graph/?g=eaB3
- dmix 8y agoThat's a very useful website. Nice work St Louis Fed.
- dalbasal 8y agoIDK how things are in your sphere, but in the context of where I live, I have watched overseas travel go from bougie luxury to something everyone can do over the last 20-25 years.
- objektif 8y agoI am not sure if that is a result of fuel efficiency or intense competition.