By Stuart Cole

* totally up-to-date 3rd variation of a longtime delivery textbook

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Extra resources for Applied Transport Economics: Policy, Management & Decision Making

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2 Single transatlantic fares 1950–2004 Year Route/airline 1950 1960 1970 1980 1997 London/New York BOAC London/New York BOAC London/New York BOAC Gatwick/Miami Laker London/New York BA/ Virgin/AA (average) London/New York 2004 Quoted fare then 125 91 87 50 165 110–250 Equivalent cost 2004 prices* 1549 774 497 82 196 180 *Adjusted for inflation Sources: American Airlines, Virgin Atlantic Airways, British Airways. Laker Airways, author’s archive, National Earnings Survey (2004). 4:1 Source: Department for Employment, National Earnings Survey (NES, 1996, 2004) share partnerships (eg KLM/Northwest; South African/Delta/Lufthansa) there still remains fierce competition to attract new travellers and to attract those who already travel with other operators.

In towns serving rural areas (eg Marlborough, Groningen) traffic congestion often occurs on market days when they accommodate the market and its associated freight traffic. (c) Seasonal peak The seasonal peak results from a concentration of summer holiday traffic, with accentuates the weekend traffic flows on roads and from airports with a high percentage of package holiday traffic. 6 hours for a Boeing 747–400 on transatlantic routes. 3 hours (BA) in the summer months to cover the demand on routes to Spain, Italy and Greece.

The cross-price elasticity impact has been seen; the income elasticity effect is also illustrated in the increased use of train services with annual increases of 8 per cent on some routes (see ‘Income elasticity’, page 64). Passenger transfer effects may also result from a reduction in petrol costs, with passengers transferring from public transport to the private car. Cross price elasticity may also be seen where the relative prices of two modes change. If rail prices increased significantly and perceived car costs remained the same, there might also be a transfer of passengers.

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