Left Unchallenged, Airfares Skyrocket Until…

Airfares between Boston and Washington, DC – a flight that is only about one hour actually in the air – have skyrocked in recent years to as much as $518 roundtrip. Take this trip from Wednesday October 27, 2010 until Friday that week: Over $500 for a one hour flight is crazy, you have to agree, but that is the price being charged by US Airways, Delta, United and American. Now, let's price out that same flight, exactly one week later – leaving on Wednesday Nov. 3 and returning that Friday: Wow… the fare fell to $149 from $518 on most major carriers – a more than 70% price drop. What's going on here? *MOUSE PRINT: "JetBlue Airways today is proud to announce plans to serve the popular Ronald Reagan Washington National Airport (DCA), its third airport in the Washington region, with seven daily nonstop flights to Boston's Logan International Airport (BOS) and one daily nonstop flight each to Fort Lauderdale-Hollywood International Airport (FLL) and Orlando International Airport (MCO) beginning November 1, 2010." – JetBlue press release. While there was plenty of competition in the Boston to DC market, there wasn't any real price competition, until JetBlue, a low-cost carrier, entered the market. You really have to wonder how did it come to pass that all those legacy carriers uniformly charged that outrageous $518 price?

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