Originally Posted by
richarddd
When thinking about the effect of reducing overbooking on airline pricing, consider why airlines haven't already raised prices.
We often think businesses price on a cost plus basis or in order to maintain some level of profitability, but market forces and competitive pressures (even in an oligopolistic industry) are very important.
True, but if profit is lower, than they will cut routes. We know how their spreadsheets work. If the revenue/plane is less, then when they run the math, more routes will not be profitable and they will cut.