Its value reflects a combination of the route
own price elasticities with cross price elasticities, when
all national routes have prices which vary in the same
way. The inelastic result is consistent with observations
that part of the price elasticity observed from low cost
carriers (LCCs) involves substitution from other routes.
When this is controlled for, LCCs have a lower level of
market stimulation, consistent with less elastic national
elasticities