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Old 7th Nov 2005, 04:20
  #31 (permalink)  
Uncle Festa
 
Join Date: Jun 2002
Location: Australia
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Sunsfish, determining the "cost" of providing a service for a given route is, at best, problematic given the mix of fixed/variable and direct/indirect costs incurred in operating an airline.

If an airline can demonstrate that its revenue from a given route is exceeding that route's variable costs (in other words, the route is making a contribution towards the airline's fixed costs), I suspect that the ACCC will have some difficulty in arguing the existence of predatory pricing.
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