Airline Pricing on Shuttle Routes

Should discount pricing for an airline’s youth shuttle passengers be resurrected in the wake of the 2008–2012 economic downturn?
Raymond Fisman  | Fall 2012
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Airline shuttle service was introduced by a major US carrier in the early 1960s in an attempt to better serve passengers flying the northeast corridor. In the years that followed, several airlines launched competitive programs, and some introduced student discount fares in the hopes of managing variations in shuttle flight load better. Most student or youth discount programs were discontinued by 2002. In this case, students are asked to analyze historical price patterns and purchasing behavior during the years that the airline offered youth fares in order to determine price and demand projections should a youth fare be resurrected in the wake of the 2008–2012 economic downturn.

Case ID: 120308

This case is used in core curriculum

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