Is advanced knowledge of "insider information"on discount fares illegal?
Sep 10, 2002, 10:34 am
#1
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Is advanced knowledge of "insider information"on discount fares illegal?
Is advanced knowledge of "insider information"on discount fares illegal?
My ex-XXXXXXXX works for XX (airline) and his/her dept is responsible for entering new discount fares into their system. If he/she tells someone just before those fares go on sale, will he/she get in trouble? (so they can snap up these cheap fares within minutes of being published in the public)
Is this the same as insider trading of stocks?
My ex-XXXXXXXX works for XX (airline) and his/her dept is responsible for entering new discount fares into their system. If he/she tells someone just before those fares go on sale, will he/she get in trouble? (so they can snap up these cheap fares within minutes of being published in the public)
Is this the same as insider trading of stocks?
Sep 10, 2002, 11:01 am
#4
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Yes.... but would it be ok if the "ex" called you at 12:01 to tell you that the fare from ORD-MCO JUST went on sale for $55 ....
Sep 10, 2002, 11:29 am
#5
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<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by absolutflying:
Is this the same as insider trading of stocks? </font>
Is this the same as insider trading of stocks? </font>
I don't think that the air fare market faces the same issue because the price discovery mechanism is virtually opaque to consumers anway, and it's pretty much common knowledge that you could be sitting next to someone on a flight who paid either a fraction or a multiple of what you paid for an equivalent seat.
However, I wouldn't be surprised if the employer had an internal confidentiality policy, which if violated could lead to disciplinary action, etc.
Sep 10, 2002, 12:53 pm
#7
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<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by SAN man:
Can you put us on an e-mail list when you get this info?
</font>
Can you put us on an e-mail list when you get this info?
</font>
, but no one has mentioned the software most travel agencies (that have survived) employ. One of the first modules that was developed was a search engine that is constantly looking for just published fares.Your friend isn't really spilling anything these search modules won't know about in an extremely quick fashion, and may even beat you to the punch buying up for their customers.
Sep 10, 2002, 12:59 pm
#8
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It's definitely not illegal - unlike insider trading, there won't be any criminal penalties. The employee probably could get disciplined and/or terminated for this, if they somehow get caught.
I expect the airlines aren't as concerned about someone grabbing the cheap seats ahead of others as they would be about someone delaying purchase of a more expensive ticket, knowing the price is soon to drop.
I expect the airlines aren't as concerned about someone grabbing the cheap seats ahead of others as they would be about someone delaying purchase of a more expensive ticket, knowing the price is soon to drop.