Published at Friday, March 29th, 2019 - 21:19:44 PM. Type of airline. By Adalrik Engel.
The advent of advanced computerized reservations systems in the late 1970s most notably Sabre allowed airlines to easily perform cost-benefit analyses on different pricing structures leading to almost perfect price discrimination in some cases (that is filling each seat on an aircraft at the highest price that can be charged without driving the consumer elsewhere).
A glimpse of the future could already be had in California and Texas. Devoid of jurisdiction over local air transportation the CAB could neither exercise fare nor route authority over intrastate airlines and these carriers usually offering high-frequency single-class no-frills service at half the fares the regulated trunk airlines were forced to charge consistently recorded both profit and traffic growth.
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