Thursday, February 08, 2007

Classic Oligopoly Behavior

Led by Delta, the US airlines are trying to raise fares:
DALLAS -- Delta Air Lines Inc. raised domestic air fares by $5 each way late Thursday, and American Airlines, the nation's largest carrier, matched the increase on Friday. No. 2 carrier United Airlines also matched Delta's increase, United spokesman Jeff Kovick said late Friday.
...It marked the third attempt at a broad-based fare increase so far in 2007. One of the previous two succeeded.
If everyone goes along by Sunday night, it will stick. If not, Monday morning fares are back to where they were.

Update: The price increases have been rolled back. United backed off first. They're 1 for 3 now.



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