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Published at Thursday, March 28th, 2019 - 04:40:38 AM. Type of airline. By Ame Jung.

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.

Regulation by definition substitutes the judgment of the regulator for that of the marketplace according to Elizabeth E. Bailey David R. Graham and Daniel P. Kaplan in their book Deregulating the Airlines (The MIT Press 1985 p. 96).

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