AIRLINE COMPETITION: HIGHER FARES AND REDUCED COMPETITION AT CONCENTRATED AIRPORTS
In response to Congressional Requesters, the General Accounting Office (GAO) examined trends in airline fares and service. GAO examined airline yields--the fare per passenger mile--at 53 of the 75 busiest airports in the nation and compared the yields of the 15 having relatively high levels of market concentration with those at the 38 remaining airports. GAO also examined trends in departure frequencies and points served from the 15 concentrated airports. GAO testified on June 7, 1989, on its preliminary findings on changes in fares and service at concentrated airports between 1985 and 1988. It was reported that, on the average, fares rose more at the concentrated airports than at the airports where there was more competition and were about 27% higher than at the airports with more competition. This report extends the analysis to include the first two quarters of 1989. The extended analysis shows that fares remained close to 27% higher. Fares charged by the dominant carriers tended to rise as their airport market shares increased. Recent analyses of fares at concentrated airports by the Department of Justice and others have also found that fares are higher at concentrated airports. Service levels at the concentrated airports generally improved. However, the number of routes where there was competition between carriers declined at most of the concentrated airports, and more routes were served by only one airline.
- Record URL:
- Report to Congressional Requesters.
U.S. General Accounting Office441 G Street, NW
Washington, DC United States 20548
- Publication Date: 1990-7
- Features: Appendices; Figures; Tables;
- Pagination: 98 p.
- TRT Terms: Airlines; Airports; Competition; Deregulation; Fares; Level of service; Market share
- Old TRIS Terms: Concentrated airports
- Subject Areas: Aviation; Economics; Highways; Society; Terminals and Facilities;
- Accession Number: 00497313
- Record Type: Publication
- Report/Paper Numbers: GAO/RCED-90-102
- Files: TRIS
- Created Date: Sep 30 1990 12:00AM