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Strategic Movements December 2017

December 2017 Corporate, Product

The Federal Aviation Administration is contemplating an $8 increase on domestic round-trip ticketing fees.  In response, Delta Air Lines Inc. claims that for every $1 increase in facility charges, passenger demand declines by more than 1%. That would imply a primary demand elasticity of about three. Seems right. So, an $8 facilities charge increase would decrease flight travel by 8%.

Wiglaf Highlights
» April 2018

The Cost of Free

» March 2018

When Price Doesn’t Matter

» February 2018

When Shortage Is Strategic