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Shenzhen Map on If a plane is to fly a given route, then the marginal cost of letting one more passenger on board may be negligible, yet no one would expect airline tickets to be sold for next to nothing. However, the unit cost may also be hard to assess, given varying fleet utilization rates and other complicating factors. Finally, the complicated fares and schedules that most airlines offer make it hard to determine the relevant price. However, in 1993, a government investigation found that airfares out of airports that were served by a single airline were almost a third higher than in those served by several airlines.

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By the early 2000s, between the terrorist attacks, war news, disease alerts, and the resulting drop in air travel, airlines' market power became more a matter of survival, as shocks to the airline industry often resulted in large losses to airlines (and sometimes lead to bankruptcies).BIBLIOGRAPHY. Lus M.

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