FEASIBILITY AND ECONOMIC IMPACT OF YOUTH STANDBY FARES

In this report, the CAB concludes that the youth standby fares are economically justified under both the past and proposed policies for evaluating the economic reasonableness of fares. Specific sections of the report deal with the history of domestic and international youth fares; CAB results of earlier investigations into discount fares; tentative new policies on fare flexibility currently being considered by the CAB; and, a summary of the public comments received in response to the CAB's request for comments. The study also notes that the proposed fare policies which the CAB has tentatively adopted would permit air carrier management to engage in greater price competition. An economic theory which describes the pricing strategy implicit in the youth standby fares is discussed as support for the economic feasibility of youth standby fares. The study also explores the data indicating that unrestricted standby fares generates significant levels of new traffic which contribute to greater carrier revenue. Finally, the report discusses the possibility of adverse impacts on airline operations. The CAB believes that whether to amend the statutory prohibition against unjust discrimination to permit youth, as a class, the benefit of an economically justified special discount fare, is ultimately a question for Congress.

  • Supplemental Notes:
    • Civil Aeronautics Board Report To Congress as a requirement of Public Law 95-163.
  • Corporate Authors:

    Civil Aeronautics Board

    1825 Connecticut Avenue, NW
    ,   USA 
  • Publication Date: 1978

Media Info

  • Pagination: 84 p.

Subject/Index Terms

Filing Info

  • Accession Number: 00178069
  • Record Type: Publication
  • Source Agency: Civil Aeronautics Board
  • Report/Paper Numbers: CAB 78-105
  • Files: TRIS
  • Created Date: Jul 19 1978 12:00AM