4 ms·

It is abuse of market power. They are trying to extract monopoly rents out of people that need to be in Charlotte because they dominate that airport. They can’t

by CPLX 3y ago

It is abuse of market power. They are trying to extract monopoly rents out of people that need to be in Charlotte because they dominate that airport. They can’t do that in NYC because of heavy competition. There are effectively four major airlines. That’s just not nearly enough to avoid anti-competitive bullshit like this.

awb 3y ago
Here's some info on the hub & spoke system: https://www.airfarewatchdog.com/blog/50066526/airline-hub-guide-which-u-s-cities-are-major-hubs-and-why-it-matters/ https://www.airfarewatchdog.com/blog/50066526/airline-hub-gu... And Charlotte in particular: https://www.wfae.org/local-news/2020-01-14/faq-city-why-do-flights-out-of-charlotte-cost-so-much https://www.wfae.org/local-news/2020-01-14/faq-city-why-do-f... > So, you're probably wondering, why does American control most of the flights here? It's because Charlotte Douglas International Airport is an American hub. The airline has 90% percent of the nearly 700 daily flights here. That lets it set whatever price it wants, says Ted Reed of Charlotte, who covers airlines for Forbes. > The answer is pretty simple: We're basically a one-airline town. There's little competition for American Airlines, says Scott Mayerowitz , the executive news director thepointsguy.com, a website that tracks the cost of flying. > "It is pure supply and demand." > "Well, I don't want to minimize the fact that this is a monopoly carrier … basically a monopoly company providing service," says Reed. "So of course, they're going to charge more. But a lot of people think the the trade-off is worth it and you know, and that's why you see the companies move here, a lot of companies move here because of the service." > "People always say to me: Fares are too high and the airlines are horrible. But yet the parking lot at the airport is always full." Wether 90% (or X%) market share qualifies as a monopoly is an age-old debate.
- CPLX 3y ago
  > Wether 90% (or X%) market share qualifies as a monopoly is an age-old debate. It really isn’t much of a debate

by CPLX 3y ago

awb 3y ago

Here's some info on the hub & spoke system: https://www.airfarewatchdog.com/blog/50066526/airline-hub-guide-which-u-s-cities-are-major-hubs-and-why-it-matters/ https://www.airfarewatchdog.com/blog/50066526/airline-hub-gu... And Charlotte in particular: https://www.wfae.org/local-news/2020-01-14/faq-city-why-do-flights-out-of-charlotte-cost-so-much https://www.wfae.org/local-news/2020-01-14/faq-city-why-do-f... > So, you're probably wondering, why does American control most of the flights here? It's because Charlotte Douglas International Airport is an American hub. The airline has 90% percent of the nearly 700 daily flights here. That lets it set whatever price it wants, says Ted Reed of Charlotte, who covers airlines for Forbes. > The answer is pretty simple: We're basically a one-airline town. There's little competition for American Airlines, says Scott Mayerowitz , the executive news director thepointsguy.com, a website that tracks the cost of flying. > "It is pure supply and demand." > "Well, I don't want to minimize the fact that this is a monopoly carrier … basically a monopoly company providing service," says Reed. "So of course, they're going to charge more. But a lot of people think the the trade-off is worth it and you know, and that's why you see the companies move here, a lot of companies move here because of the service." > "People always say to me: Fares are too high and the airlines are horrible. But yet the parking lot at the airport is always full." Wether 90% (or X%) market share qualifies as a monopoly is an age-old debate.

CPLX 3y ago
> Wether 90% (or X%) market share qualifies as a monopoly is an age-old debate. It really isn’t much of a debate