How low-cost airlines alter the economics of flying
For more than 3 years, the average one-way fare between Detroit and Philadelphia never dipped below US$308, and sometimes moved higher, topping $385 at one point. But then, early in 2016, fares suddenly started to fall, according to data from the Bureau of Transportation Statistics. By the end of the year, the average one-way ticket between the two cities stood at just $183. What changed? The primary factor was Spirit Airlines. “Without the low-cost carriers, we would have been looking at a pretty significant downturn in activity,” said James Tyrrell, chief revenue officer at Philadelphia International. Frontier Airlines, another LCC, had also added flights from Philadelphia, Tyrrell said. Without such airlines, he added, “you would have absolutely seen a different pricing structure.” <br/>
https://portal.staralliance.com/cms/news/hot-topics/2017-09-04/unaligned/how-low-cost-airlines-alter-the-economics-of-flying
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How low-cost airlines alter the economics of flying
For more than 3 years, the average one-way fare between Detroit and Philadelphia never dipped below US$308, and sometimes moved higher, topping $385 at one point. But then, early in 2016, fares suddenly started to fall, according to data from the Bureau of Transportation Statistics. By the end of the year, the average one-way ticket between the two cities stood at just $183. What changed? The primary factor was Spirit Airlines. “Without the low-cost carriers, we would have been looking at a pretty significant downturn in activity,” said James Tyrrell, chief revenue officer at Philadelphia International. Frontier Airlines, another LCC, had also added flights from Philadelphia, Tyrrell said. Without such airlines, he added, “you would have absolutely seen a different pricing structure.” <br/>
