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Author Question: Discuss the travel agency industry response to the airline commission cuts that started in the ... (Read 13 times)

Wadzanai

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on: Sep 11, 2019

Question 1

What makes Southwest Airlines and JetBlue unique?
 
  What will be an ideal response?

Question 2

Discuss the travel agency industry response to the airline commission cuts that started in the mid-1990s.
 
  What will be an ideal response?


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swimkari

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Reply #1 on: Sep 11, 2019

Answer 1

Southwest and JetBlue are unique because both were able to reach profitability at a relatively early point in their histories even while the major network carriers were struggling. JetBlue has lately stumbled from an overly ambitious expansion. The main advantage of both carriers stems mainly from low unit costs compared to that of the competition.

Answer 2

The travel agent community, through its trade association, the American Society of Travel Agents (ASTA), reacted angrily to the 1992 cuts and sued on anti-trust grounds for 725 million charging collusion among the airlines. An out-of-court settlement gave the travel agents about 86 million to distribute to its injured members in September 1995 but it was that the collusion charge was nothing more than an example of follow-the-leader in pricing that was common to oligopolies like the airlines.


Wadzanai

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Reply 2 on: Sep 11, 2019
Excellent

momolu

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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