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Title: Impact of Airline Fare Reductions of 1978
Accession Number: 01837359
Record Type: Monograph
Availability: Find a library where document is available Abstract: This is a summary of Session 114 at the 59th Annual Meeting of the Transportation Research Board. On January 23, 1980 David W. Bluestone, formerly of the Civil Aeronautics Board and now a consultant, presented a paper titled Lower Fares of 1978: Little Impact on Total Domestic Air Transport Revenues. There followed extensive discussion by panel members and from the floor. Dr. Bluestone, relying primarily on the high time-series correlation between total airline revenues and GNP, claimed that the higher revenues of 1978 could and should be attributed primarily to the surge of gross national product (GNP), and not to the low discount fares of that year. The response of travel demand to the fares was only about proportional -- or in other words, price-elasticity of demand is around unity. The discussants and other participants did not, for the most part, strongly contest these conclusions. But they criticized the use of regression analysis of great aggregates, particularly in these times of high inflation and great structural changes in the economy, in the industry, and in the air travel market. They stressed the importance, in analyzing demand for air travel, of taking careful account of such changes. They instanced the rising importance of two-income families, of foreign air travelers, of the business-personal split of the market, of higher energy costs, of traffic diversion versus stimulation, of effects on costs and profits, of airline price discrimination, and of the changing business cycle.
Supplemental Notes: Distribution, posting, or copying of this PDF is strictly prohibited without written permission of the Transportation Research Board of the National Academy of Sciences. Unless otherwise indicated, all materials in this PDF are copyrighted by the National Academy of Sciences. Copyright © National Academy of Sciences. All rights reserved.
Language: English
Pagination: 16p
Publication Date: 1981-3
Serial: Media Type: Digital/other
Features: Figures; Tables
TRT Terms: Subject Areas: Aviation; Economics
Files: TRIS, TRB
Created Date: Feb 16 2022 3:19PM
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