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Published at Monday, April 01st, 2019 - 07:21:37 AM. Type of airline. By Ailse Hahn.

If a particular city has two or more airports market forces will tend to attract the less profitable routes or those on which competition is weakest to the less congested airport where slots are likely to be more available and therefore cheaper. For example Reagan National Airport attracts profitable routes due partly to its congestion leaving less-profitable routes to Baltimore-Washington International Airport and Dulles International Airport.

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).



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