Curious About Airline “Collusion”

Why do most major airlines raise or decrease fares altogether? If one airline raise prices usually they all follow and if they don’t then the airline that first increased prices rolls them back. Is there collusion within the airline industry? – Brad, Peabody

In fact United and Continental raised their prices late last week.  And while that may seem suspicious, it seems to be just the way the marketplace works.  In order for it to be collusion at least 2 of the companies must agree ahead of time to raise their prices.  And it doesn’t look like that’s happening.  It seems to be more of a competitive thing.

However it has happened before.  In the early 90’s the government sued 8 major airlines for using a computerized system that allowed the airlines to agree on ticket price hikes before they were announced to the public.

Will you be flying this summer?  How expensive is it?

More from Declare Your Curiosity

One Comment

Leave a Reply

Fill in your details below or click an icon to log in:

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

More From CBS Boston

Download Our App
Download Weather App

Listen Live