Published at Tuesday, March 26th, 2019 - 22:28:23 PM. Type of airline. By Adelyte Möller.
Computers also allow airlines to predict with some accuracy how many passengers will actually fly after making a reservation to fly. This allows airlines to overbook their flights enough to fill the aircraft while accounting for no-shows but not enough (in most cases) to force paying passengers off the aircraft for lack of seats stimulative pricing for low demand flights coupled with overbooking on high demand flights can help reduce this figure. This is especially crucial during tough economic times as airlines undertake massive cuts to ticket prices to retain demand. 64
So regulated had the environment been in fact that an airline often had to resort to the purchase of another carrier just to obtain its route authority. Delta Air Lines for example long interested in providing nonstop service between New York and Florida continually petitioned the CAB for the rights. But the regulatory agency felt that Northeast a small local service carrier often plagued by low traffic financial loss and bad weather because of its route system needed the lucrative Florida route s revenue potential to boost it back to health and granted it the authority instead.
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