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(USA Today)   Latest Southwest Airlines fare hike will probably work because the other carriers are sheep   (usatoday.com) divider line 7
    More: Obvious, southwest, Rick Seaney, Virgin America, fares, airlines, Baltimore/Washington International Thurgood Marshall Airport, legacy carrier, US Airways  
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915 clicks; posted to Business » on 21 Aug 2012 at 10:17 AM (1 year ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



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2012-08-21 10:31:11 AM
I have a feeling customers will be fine with Southwest fare hike because Southwest is generally a very well run company with great customer services that doesn't take every single opportunity to screw over their customers.
 
2012-08-21 10:32:48 AM

max_pooper: I have a feeling customers will be fine with Southwest fare hike because Southwest is generally a very well run company with great customer services that doesn't take every single opportunity to screw over their customers.


They also are pretty consistent at making the boring safety brief somewhat amusing.
 
2012-08-21 10:35:00 AM
Is this the rate hike where they've added chairs and you need to 'buy' leg room? fark you Southwest. I already am cramped in your chairs and have to deal with Mr & Mrs "fark YOU" in front of me that need to recline for the entire flight. I'll farking drive from now on.
 
2012-08-21 10:55:40 AM
I'll pay the extra $10 for Jet Blue. Assigned seats, direct tv and wifi for the flight make it more bearable.
 
2012-08-21 12:50:57 PM
I honestly don't understand how airline pricing works. One airline raises their prices and the others trip all over themselves to do the same? I always assumed the way Capitalism worked was that a company sees their competitor raise prices then tries to lure away their business by offering a better deal.

Sounds shady to me.
 
2012-08-21 01:41:33 PM

Old enough to know better: I honestly don't understand how airline pricing works. One airline raises their prices and the others trip all over themselves to do the same? I always assumed the way Capitalism worked was that a company sees their competitor raise prices then tries to lure away their business by offering a better deal.

Sounds shady to me.


The airline industry is always the text-book example of an "oligopoly"... It is a relatively small group of companies that realize there is a very high hurdle of entry into their industry (so new competitors won't be too common) and it is in their own best interests if they don't race-to-the-bottom in pricing. Kind of a "co-opitetion". They can't have out-right collusion - but if one wants to raise prices, they will make a big announcement and closely watch to see if others follow. If others do follow, then the price increase sticks. I think if they are too brazen, the gov't will get involved.

http://en.wikipedia.org/wiki/Oligopoly
 
2012-08-21 05:31:29 PM
img16.imageshack.us

What the airlines may look like.
 
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