16 September 2012

Slowing and Heading Down

Our friends over at CAPA have been pushing out interesting data of late.

Much of their analysis is pointing to a more restrained world - particularly in the USA. They have recently shone their light on the seeming split in the US market between the big 4 and the "others".

I strongly urge you to reach this article as it is a good analysis.

At this point - the oligopoly of the US market is pushing prices higher and higher while capacity is being withdrawn.

I just wonder what the cost is to the US economy of the freedom the airlines have in the market to raise prices with seeming impunity. And who seems to be leading the charge to higher rates these days? Yup - Southwest. They have initiated more price rises this year than any other airline.


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