examine the impact of an EU-wide aviation tax on •
short-haul markets, the elasticity would be developed
as follows:
- Base multiplier: -0.6 (supra-national)
- Geographic market: 1.4 (Intra Europe)
- Short-haul adjustor: 1.1
The price elasticity would then be calculated as:
-0.6 x 1.4 x 1.1 = -0.92
To examine the impact of a UK tax on aviation •
on Trans Atlantic traffic, the elasticity should be
developed as follows:
- Base multiplier: -0.8 (national)
- Geographic market: 1.2 (Trans Atlantic)
The price elasticity would then be calculated as:
-0.8 x 1.2 = -0.96
To examine the impact of an increase in airport landing •
fees on a particular short-haul route in Asia, the
elasticity should be developed as follows:
- Base multiplier: -1.4 (route)
- Geographic market: 0.95 (Intra Asia)
- Short-haul adjustor: 1.1
The price elasticity would then be calculated as:
-1.4 x 0.95 x 1.1 = -1.46