InterVISTAS Consulting reviewed the available literature on demand elasticities. The review of previous studies helps to provide a greater understanding of air travel price elasticities and provides important insights for the new econometric analysis. The different studies produced a wide range of air travel price elasticity estimates, varying in accordance with the markets analysed, the time period assessed, the methodology used and the available data. Even within some particular studies, a range of elasticities are estimated for different markets.Nevertheless, the previous studies do show a number of consistent themes. All of the studies reviewed found that there was a significant demand response to changes in air travel prices. This indicates that any policy action that results in higher air travel prices (e.g. passenger taxes, increased landing fees) will result in a decline in demand. Critically, however, the extent of that decline will depend on a number of factors