Justice Department opens probe of airlines for possible collusion

[mcd2745]

let's see where this goes...but I've felt for a while now that there's been some shady business practices going on with the airlines.



http://www.usatoday.com/story/news/...collusion-investigation-of-airlines/29578399/

 

[turkey1031]

I heard about this yesterday. Very interesting.

 

[MillauFr]

As someone in the article mentioned it was the government who had the opportunity to block the airline mergers and chose not to do so. That the primary reason why fares are much higher than they used to be. What is Justice Department going to sue itself?

 

[jec6613]

As the industry has consolidated, this was inevitable. If the airlines were good at following their fiduciary responsibility to their shareholders, it would look like collusion, with fewer players in the market that act predictably. These investigations happen fairly frequently and rarely uncover any wrongdoing - some years ago they even investigated the salt industry after a cold winter.

 

[jetsetter90]

When prices from NYC to MCO go from approximately $220 to nothing less than $350 there is something going on!!!!! Price of gas has come down so what gives?

 

[sam_gordon]

When prices from NYC to MCO go from approximately $220 to nothing less than $350 there is something going on!!!!! Price of gas has come down so what gives?

Supply & Demand? Why does Disney get to keep raising prices? I think it's going to be hard proving collusion.

 

[jetsetter90]

Supply & Demand? Why does Disney get to keep raising prices? I think it's going to be hard proving collusion.

I agree they will never prove it was collusion but Disney raised their prices about 8%, airfare went up 60%. Not saying I agree but I'll give Disney their 8% with all their overhead and prices going up. Fuel went down..just saying. I miss the days of getting a cheap ticket and flying down for the weekend. But since it's all about the $$$$ we will never see those prices again.

 

[ILoveMyDVC]

How is it that the make-up/perfume counters never participate in sales...it's a sham

 

[sam_gordon]

I agree they will never prove it was collusion but Disney raised their prices about 8%, airfare went up 60%. Not saying I agree but I'll give Disney their 8% with all their overhead and prices going up. Fuel went down..just saying. I miss the days of getting a cheap ticket and flying down for the weekend. But since it's all about the $$$$ we will never see those prices again.

I think you missed my point. Prices will continue to go up as long as people are paying. Flights are still going out full. When demand > supply, prices rise. IMO, that's what's happening here.

 

[goofy4tink]

Where there is little to no competition, there will always be higher prices. Airlines are no different. The airlines were allowed to merge several into one......who didn't think the fares would go up??!! Flights are going out full simply because airlines are discontinuing 'excess' flights!!! So now, we, the flying public get to pay the price....higher fares, more crowded planes.

 

[jec6613]

When prices from NYC to MCO go from approximately $220 to nothing less than $350 there is something going on!!!!! Price of gas has come down so what gives?

Really, because I paid less than $350 for first class. Supply, demand, and timing where the supply side is high!

 

[sam_gordon]

But since it's all about the $$$$ we will never see those prices again.

What should it be other than money? Aren't airlines businesses? Or should they just be here for our pleasure?

 

[jec6613]

What should it be other than money? Aren't airlines businesses? Or should they just be here for our pleasure?

And the low prices from 4-7 years ago were a historical blip, as well. They went down, and have now come back up to where they were before ... and are still cheaper than they were pre-deregulation.

 

[KEVD]

Not sure what everyone else's experience has been but on JetBlue when I compare what we paid for our flight in 2015 to the rates for the same week in 2016, there is an increase of 130%. I can understand rates going up but I'm shocked by how much.

 

[mcd2745]

Not sure what everyone else's experience has been but on JetBlue when I compare what we paid for our flight in 2015 to the rates for the same week in 2016, there is an increase of 130%. I can understand rates going up but I'm shocked by how much.

Especially when you consider how much lower fuel prices are.

 

[jetsetter90]

I think you missed my point. Prices will continue to go up as long as people are paying. Flights are still going out full. When demand > supply, prices rise. IMO, that's what's happening here.

Oh I agree with you 100% and same thing with Jetblue charging for bags now ....heck everyone else is and flights are going full why shouldn't they.

What should it be other than money? Aren't airlines businesses? Or should they just be here for our pleasure?

I understand it's a business and prices will keep going up!

Really, because I paid less than $350 for first class. Supply, demand, and timing where the supply side is high!

Great!!! When was this?

Not sure what everyone else's experience has been but on JetBlue when I compare what we paid for our flight in 2015 to the rates for the same week in 2016, there is an increase of 130%. I can understand rates going up but I'm shocked by how much.

That is my point... why must they go up over 100%?

 

[jec6613]

Great!!! When was this?

I booked some months ago for the second week in December. I've gotten similar deals before, though - round trip to UIO was $100 more in first class versus coach if you booked in advance. They'd rather sell the seat, even at a only slight premium, than have an Op-Up out of coach on routes and times when first class isn't going to sell (usually high tourist/low business timing). You sometimes see the same thing on the daytime flight for routes that are served with many or even mostly red-eyes: LAX/SFO-JFK, or many of the European flights from the east coast; large business/first cabins for the overnights don't sell well on the daytime.

Lately, I've been paying less than I did 4-5 years ago (or the same but in a premium cabin) when my plans can be flexible, and about 20% more when my plans aren't. That's supply and demand in action, right there.

 

[DebbieB]

It can be market specific. I recently paid $260 roundtrip for PIT-MCO for early December. That's about the same or less than I paid in the last couple years. The most I paid was around $400 in June 2009, a high demand time. I remember when we first started going to Disney in the mid/late 90's, we were paying around $250-$300.

Regarding fuel prices, they have long term contracts. The plane doesn't get the going rate every time it is fueled like you do with your car.