Seeking Alpha

Airline carriers raised fares this week after perpetual leadoff hitter Southwest Airlines (LUV...

Airline carriers raised fares this week after perpetual leadoff hitter Southwest Airlines (LUV -1%) initiated a $10 hike per round trip. Analysts say this price increase could stick with consumer spending picking up in the U.S.
Comments (4)
  • jackooo
    , contributor
    Comments (1522) | Send Message
     
    If AMR passes anti trust scrutiny and merges, the fares will really go up. It's called a monopoly.
    13 Sep 2012, 01:16 PM Reply Like
  • DaveReller
    , contributor
    Comments (11) | Send Message
     
    Monopoly: noun; The exclusive possession or control of the supply or trade in a commodity or service.

     

    Delta, USAir, Southwest, UAL... that doesn't sound like a monopoly to me. There's certainly less competition between major carriers, but it's not a monopoly.

     

    Fares are probably going up more on the back of the increase in jet fuel prices over the past 2 months (about $.50/gal) more than any perceived/reported increase in US consumer spending. Remember - This is the same Federal Government that is also telling us that unemployment is at 8.1%.
    13 Sep 2012, 01:47 PM Reply Like
  • jackooo
    , contributor
    Comments (1522) | Send Message
     
    Monopoly is when services are limited. Not just exclusive in my mind.
    For instance certain airlines ONLY fly to certain cities. There may be two flying there but it is so limited I call it a monopoly but I also see your distinction.
    Is public service electric a monopoly? Maybe.
    13 Sep 2012, 04:20 PM Reply Like
  • DaveReller
    , contributor
    Comments (11) | Send Message
     
    I see your point, and thinking about it I would agree to some degree. Public utilities, though, are a different beast, unfortunately. They are a monopoly in my mind, but it makes some sense. They'd have to both use a common electric grid and wiring, so how would Electric Company A be able to send power to Houses 1234 and 6883 but Electric Company B send power to Houses 1233/1235 and 6882/6884 over the same wires? Of course, if solar cells were more than 17% efficient and affordable, plus high-capacity batteries available, houses could generate more of their own electricity and maybe that scenario would somehow be possible. :)
    14 Sep 2012, 11:53 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector