77% of US domestic air routes are a monopoly
- Thread starter Crash Pad DCA
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http://www.cnbc.com/id/101283739?__source=yahoo%257cfinance%257cheadline%257cheadline%257cstory&par=yahoo&doc=101283739%257cCuts+in+air+service+stifl
Consolidation Impact:
...
For the industry, consolidation has been a huge success. Since 2005, total capacity has shrunk by about 20 percent, according to Swelbar. Since then, industrywide revenues are up 40 percent after flatlining for the previous decade.
But as overall capacity shrank, cities were left to play musical chairs to see who would lose service when the music stopped.
A handful of cities have benefited with increased service. Since 2005, travelers to and from San Francisco have seen capacity expand by a third; Denver and Charlotte, N.C., have seen a boost of roughly 18 percent capacity. But travelers to a vast majority of destinations have fewer seats to choose from.
Smaller airports have been hit harder that larger cities. And short-haul flights—those under 500 miles—have been cut roughly in half over the last five years. That's produced fierce competition among cities within an hour's drive of another airport as airlines sought to eliminate redundant service.
Consolidation Impact:
...
For the industry, consolidation has been a huge success. Since 2005, total capacity has shrunk by about 20 percent, according to Swelbar. Since then, industrywide revenues are up 40 percent after flatlining for the previous decade.
But as overall capacity shrank, cities were left to play musical chairs to see who would lose service when the music stopped.
A handful of cities have benefited with increased service. Since 2005, travelers to and from San Francisco have seen capacity expand by a third; Denver and Charlotte, N.C., have seen a boost of roughly 18 percent capacity. But travelers to a vast majority of destinations have fewer seats to choose from.
Smaller airports have been hit harder that larger cities. And short-haul flights—those under 500 miles—have been cut roughly in half over the last five years. That's produced fierce competition among cities within an hour's drive of another airport as airlines sought to eliminate redundant service.
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