Insane airfare prices between Chicago and Minneapolis
Apr 29, 2018, 6:41 pm
#1
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Insane airfare prices between Chicago and Minneapolis
Spirit airlines recently ended its nonstop service between Chicago and Minneapolis. This has caused airfare to skyrocket for this route. You used to be able to get fares around $140 rt up to $200 rt. Now the cheapest flights are set at $230 round trip and that is for basic economy type fares.
No last minute deals either (which used to be available). Flights within the next 14 days are around $500 rt!!!!!!
No last minute deals either (which used to be available). Flights within the next 14 days are around $500 rt!!!!!!
I get that this is primarily a business traveler route and companies will fork over these higher prices. But the off peak leisure traveler timed flights are just as expensive and I don’t see this to be sustainable. Leisure travelers just aren’t going to pay these prices.
But.....no collusion.
But.....no collusion.
Apr 30, 2018, 4:15 pm
#2
Moderator: Manufactured Spending
Join Date: Jul 2011
Posts: 6,580
That's exactly what happens when you don't have a discount carrier on the market. While the discount carrier is in the market, the legacies will match the price, so people will fly them instead. Everyone wants Spirit to be in the market to bring down the airfares, but no one wants to give them any money. So they leave, and prices shoot up.
I don't know if this price is sustainable for this route. If not, empty seats will lead to lower fares. But I don't see any reason to think there is collusion. The airlines are charging what they think people will pay. Some people will pay it, others will cancel their trips or drive or take Megabus. It may take a while for equilibrium to be reached.
I don't know if this price is sustainable for this route. If not, empty seats will lead to lower fares. But I don't see any reason to think there is collusion. The airlines are charging what they think people will pay. Some people will pay it, others will cancel their trips or drive or take Megabus. It may take a while for equilibrium to be reached.
Apr 30, 2018, 4:27 pm
#3
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Are MileSAAver seats available on the AA nonstops? If so, the roundtrip could be had for 15,000 AA or BA miles (BA "Avios"), or for 12,000 Iberia Plus Avios. No close-in award-booking fee when redeeming with BA or IB for AA flights. 
Apr 30, 2018, 5:39 pm
#4
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Spirit airlines recently ended its nonstop service between Chicago and Minneapolis. This has caused airfare to skyrocket for this route. You used to be able to get fares around $140 rt up to $200 rt. Now the cheapest flights are set at $230 round trip and that is for basic economy type fares.
No last minute deals either (which used to be available). Flights within the next 14 days are around $500 rt!!!!!!
No last minute deals either (which used to be available). Flights within the next 14 days are around $500 rt!!!!!!
I get that this is primarily a business traveler route and companies will fork over these higher prices. But the off peak leisure traveler timed flights are just as expensive and I don’t see this to be sustainable. Leisure travelers just aren’t going to pay these prices.
But.....no collusion.
But.....no collusion.
You believe Spirit and the other airlines collaboratively planned to have Spirit leave the market (in exchange for some quid pro quo)? That's collusion.
Business make decisions to enter and exit markets all the time. That's competition.
If they're not sustainable, then they'll change.
Apr 30, 2018, 7:20 pm
#5
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OP - What collusion? What did NK get to drop its route. If you think that there is something nefarious, it had to get something.
Or perhaps, just perhaps, the economy is on screech, demand is up, availability is down and what happens to prices? They go up.
Will they come down? Maybe. Pray for a recession and maybe they will.
Or perhaps, just perhaps, the economy is on screech, demand is up, availability is down and what happens to prices? They go up.
Will they come down? Maybe. Pray for a recession and maybe they will.
May 3, 2018, 5:39 am
#7
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