Competition, Fares and Fences— Perspective of the Air Traveler

Abstract

Interest in airline deregulation has been high in both the United States and Canada, however, the complexity and rapidity of change surrounding regulatory reform has permitted very little systematic study of deregulation and its effects on the various components of the total airline system. A series of group interviews with vacation and business travelers from the metropolitan region of Calgary, Canada, were conducted to determine consumers' perceptions of the concept of competition in the airline industry; to identify the benefits and disadvantages that consumers feel result from competition; and to examine consumers' preferences and dislikes concerning different variables which define and give rise to competition. Four dimensions of competition are examined: choice, fares, service, and schedules.