Domestic Air Fare Changes Under the Airline Deregulation Act of 1978: An Analysis of Pricing Flexibility, the Standard Industry Fare Level and Changes in Cost, Productivity and Profitabilitiy of the Domestic Trunk and Local Service Airline Companies

摘要

The purpose of this report was to identify the major factors influencing the changes that have occurred in Domestic Airline Fares. Specifically, the purpose of this report was to: (1) Index changes to date in the standard industry fare level; (2) Index changes to date in the industry average revenue yield; (3) Relate standard industry fare level to standard in use for measuring costs and prices for the National Economy; and (4) Document changes that have taken place in the Fare flexibility range. The results of the analysis are reported in five sections. They are: Establishment of the Standard Industry Fare Level; The Airline Passenger Fare Structure in Theory and in actuality; Airline Industry Production costs--Changes in input factor prices and the Mix of Resources; Productivity changes in the Airline Industry; and Profitability and Management Decisions.