Jun 29, 2009

A crash as a negative demand shock

I have been buying Geneva-Montréal plane tickets for a while now, going through Amsterdam, Paris, London, Frankfurt or Zurich. The price difference between these options has always been minimal…hence I was selecting my favorite airline and airport. Now one option is way cheaper than the others…and it’s Air France through Paris. I guess their share of the demand has gone down with what happened, and now they have to lower prices to fill up their planes…

Check out the price difference (from orbitz.com today)

Northwest $1273
Air Canada $1120
Swiss $1221
British Airways $1259
Lufthansa $1229
Alitalia $1331
United $1436
Air France $825

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