Optimal Air Fares and Flight Frequency and Market Results

Optimal Air Fares and Flight Frequency and Market Results

Optimal air fares and frequency may bring profits, but normally a subsidy will be needed. It is also possible for competition to provide the optimal number of flights.

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Optimal Public transport Price and Service Frequency

Because values of time and passenger behaviour depend on the level of frequency it is found that: (1) in urban public transport there may be one low-deficit local optimum and one high-deficit local optimum, one of which is global; (2) contrary to what might be expected, optimal financial deficit per passenger is typically larger for high frequency services than for low-frequency services; (3) the optimal off-peak may exceed the optimal peak price.

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