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Predatory Pricing


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#1
justindw199

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Okay, I'm starting to get really tired of these people that are engaging in predatory pricing on all of my routes. I operate 150 pax a day from Airport A to Airport B, I'm the only airline. Suddenly, another airline comes into market only and sets his ticket levels far below what he can profit from. There is simply no way he is making any money on these routes he trying to drive me out of. This is no spamline, but this is beyond ridiculous (and illegal in the real world).



#2
FearofFlying

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.... on all of my routes......

 

I missed the button where we purchase a licence to operate, where did you find it?

 

 

 

 

...... (and illegal in the real world).

 

Google search "predatory pricing airlines" ; 1st result =

 

"Predatory pricing claims in the airline industry have traditionally been unsuccessful under the current legal framework. Allegations of predatory pricing arise when a major airline, operating from its hub airport, responds to the entry of a low-fareairline by aggressively lowering price and adding capacity."

 

http://moritzlaw.osu....2.robenalt.pdf



#3
justindw199

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I missed the button where we purchase a licence to operate, where did you find it?

 

 

 

 

 

Google search "predatory pricing airlines" ; 1st result =

 

"Predatory pricing claims in the airline industry have traditionally been unsuccessful under the current legal framework. Allegations of predatory pricing arise when a major airline, operating from its hub airport, responds to the entry of a low-fareairline by aggressively lowering price and adding capacity."

 

http://moritzlaw.osu....2.robenalt.pdf

Okay, since you want to be that way...

1) "All of my routes" refers to the majority of my routes in which I operate on, with, or without competition.

2) Illegal, as this has been attempted before in the real world and it was blocked by the Canadian government.

Also, while I am a low cost carrier, I am not aggressively undercutting the competition. I focus on quality at competitive prices on most of my routes. For example, JFK - BOS, I have the lowest frequency (20x flights a week) but I have the highest reputation of any airline on the route, so I can fill my planes.

Call it market dumping if you want to be picky, I don't care. My complaint still stands.



#4
FearofFlying

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I looked at your routes before I posted...and I'm not in R3... so I know it isn't me competing against you...

 

 

....it was blocked by the Canadian government.

 

 

This explains everything.  :D

 

 

......

 

2 things....

 

First....I have been upset by unfair tactics before... some people play multiple airlines with alts... harvest planes... start airlines in your hubs just to disrupt you... spam 1$ routes all over your face.... but if you can't handle a little competition for green pax, the US market is not for you. Try something in South America or Africa...

 

Second... if you actually wanted advice I would have said move your route... or even suggested messaging the ceo of the airline to determine intentions and see if you can work out an agreement before starting a price war... but you didn't... you just lodged a complaint in the general discussion... so it's not like you deserve the kid gloves of the new players questions...

 

I'm not being picky, your complaint is baseless. This is the game you are competing in /



#5
Ardaeshir

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Okay, I'm starting to get really tired of these people that are engaging in predatory pricing on all of my routes. I operate 150 pax a day from Airport A to Airport B, I'm the only airline. Suddenly, another airline comes into market only and sets his ticket levels far below what he can profit from. There is simply no way he is making any money on these routes he trying to drive me out of. This is no spamline, but this is beyond ridiculous (and illegal in the real world).

 

As much as I diassprove of these practices, they do occur in real life. OLT Express is the first example that comes to mind, but there are others in many other regions of the world.


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