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AC named in 'overpricing conspiracy' lawsuit

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AC named in 'overpricing conspiracy' lawsuit

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Old Jul 17, 2015, 7:23 am
  #46  
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Originally Posted by yulred
Sure you can.

If airline A agrees not to serve XXX-YYY in return for airline B not operating (or increasing frequencies) on YYY-ZZZ, price fixing may be achieved by restricting supply.

That's not to say that it's definitely happening in this case. Only that it 'can'.
Actually airline alliances are the biggest price fixers going. When they create their code shares that is effective price fixing. Canada to Germany is a prime example. While both AC and LH operate flights they share profits on all passengers flown by either.

UA has several of those types of arrangements and the cowboy above should be looking at his favourite airline he flies all the time instead of the one he studiously avoids
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Old Jul 17, 2015, 9:47 am
  #47  
 
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Originally Posted by zorn
Did you read the rest of what he wrote?

There are many, many options for flying from YYZ to SFO and back.
Indeed, there is an option to use UFO taking off from YYZ and landing in SFO.
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Old Jul 17, 2015, 10:18 am
  #48  
 
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Using Toronto-SF as the poster child for air sector monopoly is as laughable as including an airline expanding at record levels in a capacity restriction lawsuit

Delta, American etc don't fly YYZ<>SFO non-stop because they'd rather stick to routes that have a fighting chance of returning profit.

Westjet doesn't serve YYZ<>SFO because they'd get crushed by AC's feed on both ends, frequency, and dominance on the route.

Let's not be silly here . . . . I mean, Montreal and Dallas are 2 huge cities. Does AA have a monoploy on the route? OR, Do they just have a gigantic network beyong DFW and a WS codeshare on the YUL end rendering n/s viable while others (including AC) can't make it work
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Old Jul 17, 2015, 10:45 am
  #49  
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Originally Posted by yulred
Sure you can.

If airline A agrees not to serve XXX-YYY in return for airline B not operating (or increasing frequencies) on YYY-ZZZ, price fixing may be achieved by restricting supply.

That's not to say that it's definitely happening in this case. Only that it 'can'.
NO, that is called collusion.
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Old Jul 17, 2015, 2:28 pm
  #50  
 
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Originally Posted by why fly
But the issue is AC has been named in a class action lawsuit, lets hope they are caught for this price gouging.
There is no such thing as price gouging in a free market with easy entry. Price gouging is not a legal concept, it is moral concept.

As a former senior executive of a large Canadian carrier whose name is not Air Canada posted on another forum about this suit:

A first year economics student could create a presentation with a day's research and have this case thrown out of court in about 20 minutes.

Complete and utter nonsense.
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Old Jul 17, 2015, 7:36 pm
  #51  
 
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Originally Posted by Wpgjetse
NO, that is called collusion.
Price fixing IS a function of collusion.

Best to look up the meaning of terms before making definitive statements.
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Old Jul 17, 2015, 7:50 pm
  #52  
 
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Originally Posted by Sebring
There is no such thing as price gouging in a free market with easy entry. Price gouging is not a legal concept, it is moral concept.

As a former senior executive of a large Canadian carrier whose name is not Air Canada posted on another forum about this suit:
Price gouging may be a moral concept, but anti-competitive behaviour is a legal concept.

As for what senior Canadian airline executives say about anti-competing behaviour lawsuits, are they going to admit wrongdoing? One wonders if the notion of competition is even compatible with their worldview, what with aviation being compared to dairy supply management by one of the senior most among them.

Any first year economics student would point out that a significant capacity increase in a mature market would cause the market to wobble. Havent seen any sign of that in the domestic market. There are questions that ought to be asked.
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Old Jul 18, 2015, 1:58 am
  #53  
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Originally Posted by yulred
Price gouging may be a moral concept, but anti-competitive behaviour is a legal concept.

As for what senior Canadian airline executives say about anti-competing behaviour lawsuits, are they going to admit wrongdoing? One wonders if the notion of competition is even compatible with their worldview, what with aviation being compared to dairy supply management by one of the senior most among them.

Any first year economics student would point out that a significant capacity increase in a mature market would cause the market to wobble. Havent seen any sign of that in the domestic market. There are questions that ought to be asked.
In a similar vein, how often have you seen class action suits against gasoline retailers who match prices penny for penny everywhere. That is truly anti competitive but every few years the federal pretends to take an interest in that pricing and then goes back to sleep.
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Old Jul 18, 2015, 8:30 am
  #54  
 
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Originally Posted by Hello again
In a similar vein, how often have you seen class action suits against gasoline retailers who match prices penny for penny everywhere. That is truly anti competitive but every few years the federal pretends to take an interest in that pricing and then goes back to sleep.
Its for your own good. You would feel bad if after a fill up you would find out the price of gasoline was few pennies less down the street. Consistent pricing makes everybody happy but high prices makes all of us
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Old Jul 18, 2015, 8:37 am
  #55  
 
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Originally Posted by 1Newflyer
Its for your own good. You would feel bad if after a fill up you would find out the price of gasoline was few pennies less down the street. Consistent pricing makes everybody happy but high prices makes all of us
I fail to see how consistently high pricing makes the consumer happy. The price of oil has dropped considerably over the past couple of weeks. The price at the pumps has gone up. I am confused, how are we being protected
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Old Jul 18, 2015, 8:47 am
  #56  
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Originally Posted by yulred
Price fixing IS a function of collusion.

Best to look up the meaning of terms before making definitive statements.
Prices fixing does not mean collusion in all cases. Usually if collusion took place, the investigation would state collusion instead of price fixing.
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Old Jul 18, 2015, 10:50 am
  #57  
 
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Originally Posted by YEG2MM
I am confused, how are we being protected
We are not protected. World is unfair and inequitable. Unless you are the one on the other side of commerce. Then everything is fine and dandy.
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Old Jul 18, 2015, 1:12 pm
  #58  
 
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Originally Posted by Wpgjetse
Prices fixing does not mean collusion in all cases. Usually if collusion took place, the investigation would state collusion instead of price fixing.
How does price fixing occur without collusion?
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Old Jul 18, 2015, 3:42 pm
  #59  
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Originally Posted by yulred
How does price fixing occur without collusion?
One way, always just match fares. Westjet adds baggage fees, AC copies. No one talks, but if general understanding in the industry is match pricing, well you have price fixing. No collusion.
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Old Jul 18, 2015, 9:34 pm
  #60  
 
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Originally Posted by Wpgjetse
One way, always just match fares. Westjet adds baggage fees, AC copies. No one talks, but if general understanding in the industry is match pricing, well you have price fixing. No collusion.
Nope, that's conscious parallelism. Not price fixing.
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