I'm well aware of the legal definition of collusion, thank you.
Of course not. However, all parties raising fares in concert is significant evidence toward a collusion charge.
No, not all parties have to participate. However, only two parties participating (when there are more than two in the market) will rarely produce the desired effect.
It can, but it's usually far easier to prove the predatory pricing charge than the collusion charge in that case. Hence why you won't see collusion charges when fares are lowered.
I apologize if that was your inference. My intent was to suggest that WN's fares would be higher were it not for the hedging. They'd still retain pricing power in certain markets, but not to the degree that they currently do.
Patently false. It is
one reason, but far from the
only reason.
In cost, yes. However, the legacies do still retain a degree of pricing premium over WN. This is why I was saying that WN's pricing power erodes without the hedging. Right now, AA has a much better cost structure than they did in 2001. Combined with their premium offering, they would have an opportunity to compete effectively against WN were it not for the additional competitive advantage of hedging. The same could be said for CO.
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