• Trans Atlantic (North America – Europe). A high
price elasticity was found for this market, with an
elasticity multiplier of 1.2. This market has long been
developed by low fare charter airlines. Price is likely
more important than frequency in this market than in
US domestic markets
• Trans Pacific (North America – Asia). By contrast,
markets across the Pacific are estimated to have a
much less elastic response, with an elasticity multiplier
of 0.6. There are no charter services and there remain
markets with less liberal pricing regulation. There are
early signs of long-haul LCCs emerging but at present
this market shows much less sensitivity to travel price
than the US domestic market or the trans Atlantic
market.
• Europe-Asia. This market is estimated to be slightly
less price sensitive, with an elasticity multiplier of
0.9. This result is in contrast to the results found in
the respective intra markets of Europe and Asia, and
provides further evidence for lower elasticities on longhaul
and intercontinental air transportation.