The appropriate value of a demand elasticity will vary in
accordance to the context in which they are considered.
For air transport there are five main levels (for the scope
of the market) for which demand elasticities can be
estimated:
Price Class Level. This the most disaggregate level, •
where passengers make a choice between different
price classes (e.g. first class, business class, economy
class) on individual airlines.
Airline / Air Carrier Level. This reflects the overall •
demand curve facing each airline on a particular route.
Route / Market Level. At the route or market level •
(e.g. London Heathrow–Paris CDG or London–Paris),
travellers faced with a price increase on all carriers
serving a route (e.g. due to an increase in airport fees
and charges), and have fewer options for substitution.