The review of previous research found consistent results
showing that air travel price elasticities on short-haul
routes were higher than on long-haul routes. This largely
reflects the greater opportunity for inter-modal substitution
on short-haul routes (e.g. travellers can switch to rail or
car in response to air travel price increases). While the
geographical breakdowns outlined in the next section
capture some variation by length of haul, there is still
considerable variation within each market. In particular,
very short-haul flights (approximately less than 1 hour
flight time) are subject to greater competition from other
modes.