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Katrina D

Porter Airlines' edge - 0 views

www.financialpost.com/...story.html

equilibrium airlines demand

shared by Katrina D on 23 Oct 11 - No Cached
  • Katrina D on 23 Oct 11
     
    This Financial Post article talks about the successes of Porter Airlines, a small Canadian company that founded about 5 years ago. The company is currently moving through the price mechanism, but hasn't reached its second equilibrium yet. Its demand has increased by a lot recently (due to holding a monopoly at their island airport in Toronto, and higher profit margins per plane compared to other Airlines), therefore shifting the curve to the right. However, since the Price has yet to increase, they are stuck at the 'middle stage' of the price mechanism where the demand is higher, but the price is still the same. We can predict from this that the prices will soon increase to make a higher profit with the growing demand, as we've seen in the textbook graphs.
Mirren M

AirAsia monopoly on Sandakan - Airline News - etravelblackboardasia.com - 0 views

www.etravelblackboardasia.com/...airasia-monopoly-on-sandakan

monopoly

shared by Mirren M on 23 Mar 12 - No Cached
  • Mirren M on 23 Mar 12
     
    AirAsia has monopoly on the route between Kuala Lumpur and Sandakan, as Malaysian Airlines subsidiary airline Firefly is no longer a competition between the two destinations.
Lola Z

Online forecasting: And now, the gadget forecast | The Economist - 1 views

www.economist.com/...online-forecasting

equilibrium

shared by Lola Z on 22 Oct 11 - No Cached
    • Lola Z
      Lola Z on 22 Oct 11
       
      Predictions of demand help to set the prices of goods. It is necessary to eliminate excess supply for companies to maximize their revenues.
  • In time this might force sellers to slash their margins and discount obsolete products languishing in inventories as buyers await the arrival of new versions. That said, retailers' prices are already at or near equilibrium.
    • Lola Z
      Lola Z on 22 Oct 11
       
      While the prices are at equilibrium, there is not an apparent excess supply or demand.
  • Airlines use all the computational power at their disposal to maximise their returns by setting fares based on current and predicted demand.
    • Lola Z
      Lola Z on 22 Oct 11
       
      Demand here acts as a signal to producers. Increase in demand will raise the market equilibrium price.
  • Lola Z on 22 Oct 11
     
    This article talks about how forecasting demand influences the setting of prices. Producers use online tools to predict demand and hence set the prices. If generally consumers are confident with the products, the demand rises, and equilibrium prices will go up because the demand curve shifts to the right. When supply and demand are almost at equilibrium, the prices will tend to become more stable.
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