Cheap Airline Flights – Now fly at will.
What is it about cheap airline flights that have caused such a revolution in both the supply and the demand for tickets on both sides of the Atlantic? There are several factors which make cheap airline flights such a bargain, and which encourage so many more people to travel who may not have considered it in the past. Let’s consider these factors in order: first, what is it that has increased the supply of seats and planes at cheap fares, and second, what has happened amongst customers that shows that cheap airline flights can increase primary demand by such a large margin?
Low-cost airlines did not exist during the period of global flight regulation, which lasted until 1977 in the United States, and is only now coming down in Europe and Far East Asia. In the US, for example, the Civilian Aviation Authority regulated which airlines could fly which routes and even had a say over the pricing that was required. They did not regulate how high the prices could go—for that, there was no regulated limit. Rather, they regulated a floor under which airlines could not sell tickets. There were a few outlets, which gave below-floor rates, such as charter fares, but for the most part, it was against the law to go against the CAA when it set rates and schedules.
The dam began to burst during the early 1970’s, when so-called ‘group fares’ became more common. At first, if you had a group of 40 or more, you could reduce the fare or negotiate it with the airline. This number fell to 15, then to 10, later in the decade as airlines became hungrier for business at lower costs. Similarly, passengers were generally either rich or business passengers. There was very little vacation travel by plane, as it was too expensive. Many leisure passengers considered other options, including trains, car travel or busses (when is the last time you took a trip by bus?) As fares came down, more and more travelers picked up on the advantages of airline travel. Hence, the modern leisure traveler thinks nothing of buying a ticket today and flying to another continent tomorrow.