Manufacturing Industry
American Airlines points out that new study disputes study results distributed by Southwest Airlines
Airline Industry Information, Oct 19, 2005
AIRLINE INDUSTRY INFORMATION-(C)1997-2005 M2 COMMUNICATIONS LTD
American Airlines has issued a statement regarding research distributed by Southwest Airlines regarding the Dallas/Fort Worth International Airport.
According to the airline, new research by Bijan Vasigh, a professor at Embry-Riddle Aeronautical University (ERAU), calls into question the validity of a previous study distributed by Southwest Airlines and The Campbell-Hill Aviation Group. Professor Vasigh reportedly examined the economic premise of the Campbell-Hill study and found significant economic modelling errors that call into question the validity of the entire study. Vasigh has found that the main errors made by Campbell Hill are: first, assuming there are currently no low-cost carriers operating at DFW International Airport; the second is relying on pricing and market-stimulation assumptions that are more than a decade old; and the third ignoring the industry's fare readjustment in January 2005.
The American Airlines statement also says that, in fact, the consumer benefits claimed in the flawed study would be realised more quickly and directly by Southwest moving its operations immediately to DFW Airport, according to Vasigh.
((Comments on this story may be sent to aii.feedback@m2.com))
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