The effect of low fare air carriers on airfares in the US |
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| Institution: | 1. School of Pharmaceutical Sciences, Sun Yat-sen University, Guangzhou 510006, PR China;2. Affiliated Cancer Hospital & Institute of Guangzhou Medical University, PR China;1. College of Medicine, Sulaiman AlRajhi Colleges, P.O. Box 777, Al Bukayriah 51941, Saudi Arabia;2. College of Medicine, Qassim University, P.O. Box 6655, Buraidah 51452, Saudi Arabia |
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| Abstract: | This paper examines the role that low fare air carriers play in determining air fares in the US. Regression modeling is used to test variables focusing on geographic and competition issues effecting airfare pricing. Variables tested in the modeling include the presence of low fare carriers in a market, hub domination, market share, and type of destination served. The final results show that low fare carriers play a statistically significant role in airfare determination in the US. |
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