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 shorthaul
flights (approximately less than 1 hour flight time)
are subject to greater competition from other modes.
• On this basis an elasticity multiplier of 1.1 is used
to adjust air travel price elasticities for short-haul
markets. This does not apply to the analysis of transAtlantic
or trans-Pacific markets, which are entirely
long-haul, with virtually no opportunity for modal
substitution.