Published at Tuesday, April 02nd, 2019 - 12:02:01 PM. Type of airline. By Amalasand Horn.
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.
In the context of climate change and peak oil there is a debate about possible taxation of air travel and the inclusion of aviation in an emissions trading scheme with a view to ensuring that the total external costs of aviation are taken into account.
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