Published at Saturday, April 06th, 2019 - 00:54:34 AM. Type of airline. By Adelle Jäger.
A complicating factor is that of origin-destination control ( O&D control ). Someone purchasing a ticket from Melbourne to Sydney (as an example) for A$200 is competing with someone else who wants to fly Melbourne to Los Angeles through Sydney on the same flight and who is willing to pay A$1400. Should the airline prefer the $1400 passenger or the $200 passenger plus a possible Sydney-Los Angeles passenger willing to pay $1300? Airlines have to make hundreds of thousands of similar pricing decisions daily.
Congress passed the Air Transportation Safety and System Stabilization Act (P.L. 107-42) in response to a severe liquidity crisis facing the already-troubled airline industry in the aftermath of the September 11th terrorist attacks. Through the ATSB Congress sought to provide cash infusions to carriers for both the cost of the four-day federal shutdown of the airlines and the incremental losses incurred through December 31 2001 as a result of the terrorist attacks. This resulted in the first government bailout of the 21st century. 43 Between 2000 and 2005 US airlines lost $30 billion with wage cuts of over $15 billion and 100 000 employees laid off. 44
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