Competition Summary
Passenger Demand and Market Share
As far as I understand, the main factors that affect how passengers choose their airlines when a route is over supplied are:
- Price
- Frequency
- Route Reputation
These assumptions are based on Yuxi's responses in this post http://www.airline-e...oute-reputation
Now, if we apply these assumptions to the practical example as shown in the images, Airline B (red) should get the largest share in the route. Since they have the highest reputation and frequency, while having the same price as the other competitors. The supply offered by Airline B also exceeds the demand of the route.
However, the truth is Airline A is having the largest share in the route. 5% is not much, but the issue is I see no reason at all for that to be the case. Is this an error in the route reputation display? Is there a random factor that is in play behind the scenes? Is Airline A supported by the Illuminati?
*Honestly, why bother at all if there is literally nothing you can do to win over the passengers as a non budget airlines?*