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Published at Monday, April 01st, 2019 - 10:21:22 AM. Type of airline. By Adelinda Simon.

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

Most airlines use differentiated pricing a form of price discrimination to sell air services at varying prices simultaneously to different segments. Factors influencing the price include the days remaining until departure the booked load factor the forecast of total demand by price point competitive pricing in force and variations by day of week of departure and by time of day. Carriers often accomplish this by dividing each cabin of the aircraft (first business and economy) into a number of travel classes for pricing purposes.



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