ADDRESSING THE CORRECT ELASTICITY TO THE APPROPRIATE QUESTION
At the Route level. To examine the impact of an increase in airport landing fees on a particular short-haul market in South America, the price elasticity would be derived as Base elasticity-1.4(route) multiplied by 1.25 (intra South America) multiplied by 1.1(short-haul multiplier) which equals-1.93
A 10% rise in the airport landing fee would reduce passenger numbers on short-haul markets serving that airport by over 19%