Why are airfare prices so high, despite low oil prices?
#18
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People look at NYC-LAX and say, wow, six or seven airlines duking it out, no problem there, it's only $450 if I time it right. True, but that's not most peoples' use case. Most people are flying to or from a second-tier city, probably via a hub, and for them the effect of mergers, consolidation, and capacity constraints has been very negative. This is data-demonstrable and has been since 2011 or so. You can easily pay more to fly from Grand Forks to Chicago than from Chicago to London. Many second- and third-tier cities are down to one or two network carriers, plus two or three flights a week to Vegas on Allegiant. Alternatives: Megabus, drive, or stay home.
If you are pleased with what the US airline industry has become, send a thank-you note to the US Department of Justice.
#19
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Good for you, but most people aren't flying around the world. They are flying from Ft. Lauderdale to Little Rock (or whatever). And prices for domestic routes with little competition / choice have been steadily rising. (This is looking beyond the OP's BQN-JFK focus, for which $410 all in per person does not seem bad.)
People look at NYC-LAX and say, wow, six or seven airlines duking it out, no problem there, it's only $450 if I time it right. True, but that's not most peoples' use case. Most people are flying to or from a second-tier city, probably via a hub, and for them the effect of mergers, consolidation, and capacity constraints has been very negative. This is data-demonstrable and has been since 2011 or so. You can easily pay more to fly from Grand Forks to Chicago than from Chicago to London. Many second- and third-tier cities are down to one or two network carriers, plus two or three flights a week to Vegas on Allegiant. Alternatives: Megabus, drive, or stay home.
If you are pleased with what the US airline industry has become, send a thank-you note to the US Department of Justice.
People look at NYC-LAX and say, wow, six or seven airlines duking it out, no problem there, it's only $450 if I time it right. True, but that's not most peoples' use case. Most people are flying to or from a second-tier city, probably via a hub, and for them the effect of mergers, consolidation, and capacity constraints has been very negative. This is data-demonstrable and has been since 2011 or so. You can easily pay more to fly from Grand Forks to Chicago than from Chicago to London. Many second- and third-tier cities are down to one or two network carriers, plus two or three flights a week to Vegas on Allegiant. Alternatives: Megabus, drive, or stay home.
If you are pleased with what the US airline industry has become, send a thank-you note to the US Department of Justice.
I miss the days when AA, CO, DL, NW, UA, US (even TW when I first moved there) had to compete with each other. Then there was SW, F9, and FL offering lower prices to keep the legacies in line. Back then B6 was irrelevant for people in secondary cities, VX wasn't in the picture yet, NK and G4 were both around but relatively unknown in most parts of the country, but there were so many choices from any given city pair that you'd never pay remotely close to what you have to today. I have absolutely no love for the DOJ for allowing the 4 recent mega mergers. I think the AA & TW merger before that was irrelevant because I believe unfortunately TW would have just collapsed if AA hadn't bought it.
Having said that, the market is probably in a better state now to support start up airlines and LCCs than it was in the late 90's and 2000's when legacy airlines were cheap and still full service, so many new entrants tried and quickly failed. I can easily see space for another with a model like SW or B6.
#20
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...the market is probably in a better state now to support start up airlines and LCCs than it was in the late 90's and 2000's when legacy airlines were cheap and still full service, so many new entrants tried and quickly failed. I can easily see space for another with a model like SW or B6.
But the barriers to entry remain high, both capital-wise (airlines are notorious destroyers of capital) and structurally -- it's still hard to elbow one's way into major markets. VX has been operating since 2007 but still serves only 18 US airports, many co-terminals for the same metroplex (DCA + IAD, JFK + LGA - EWR, etc.) and ignores big markets like ATL, MIA, MSP, DTW, DEN, CLE, CVG, PHL, etc. So VX is a great operation but a fringe factor. It's totally useless / irrelevant to most people, barely growing, and still struggling.
As the cartel continues to force bad and limited service plus high prices on a weary and resentful public, someone will figure out how to crack the nut and give them a run for their money. I hope. Hasn't happened yet. An insurgent either gets sucked into the cartel (WN) or remains a limited threat on the outside looking in.
#22
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$400 for P.R. to NYC R/T in the summer sounds about right. Planes are full. It's supply/demand, and these days nearly all of the supply is controlled by very few airlines.
If you seek to stay in a Manhattan hotel, you might want to get quotes on that before you book the flight. You'll get your 2nd great example of supply and demand at work...
If you seek to stay in a Manhattan hotel, you might want to get quotes on that before you book the flight. You'll get your 2nd great example of supply and demand at work...
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#25
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Good for you, but most people aren't flying around the world. They are flying from Ft. Lauderdale to Little Rock (or whatever). And prices for domestic routes with little competition / choice have been steadily rising. (This is looking beyond the OP's BQN-JFK focus, for which $410 all in per person does not seem bad.)
People look at NYC-LAX and say, wow, six or seven airlines duking it out, no problem there, it's only $450 if I time it right.
People look at NYC-LAX and say, wow, six or seven airlines duking it out, no problem there, it's only $450 if I time it right.
IMO, if the airlines weren't permitted to compete like this it would not result in a lowering of costs for flights to non-competitive cities. It would result in a higher cost on the NYC-LAX type routes.
#26
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Where you have competition, prices go down. Airlines make it up on the routes with little competition. Don't blame the DOT. Blame the Free Market.
IMO, if the airlines weren't permitted to compete like this it would not result in a lowering of costs for flights to non-competitive cities. It would result in a higher cost on the NYC-LAX type routes.
IMO, if the airlines weren't permitted to compete like this it would not result in a lowering of costs for flights to non-competitive cities. It would result in a higher cost on the NYC-LAX type routes.
#28
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Airline cartelization. They didn't lower prices when fuel prices dropped because they've reduced capacity and didn't have to.
#29
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All things considered, air travel is relatively cheap considering the technology and time savings involved. I'll be curious to see what high-speed rail ticket prices will be like here in the US (if it even happens in my lifetime). But at least in Japan, Shinkansen prices are on par with the airlines, so I'm not sure that will much of a cost savings either.
#30
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All things considered, air travel is relatively cheap considering the technology and time savings involved. I'll be curious to see what high-speed rail ticket prices will be like here in the US (if it even happens in my lifetime). But at least in Japan, Shinkansen prices are on par with the airlines, so I'm not sure that will much of a cost savings either.
For the OP, a connection with high-speed rail from PR to mainland US seems less than unrealistic