Abstract

The price policy represents one of the most important segments of overall business policy of every airline. One of the areas where subtle approach as well as, creativity and intuition of airline management come to their full force is price discrimination. Developed airlines are successful in the application of price discrimination. They offer a wide range of air tickets depending on how much time in advance tickets are bought, the estimate of the amount that is to be returned in case of flight change or cancellation, whether the journey includes staying over the weekend or not. Starting from the most frequent lines, the authors have analysed the movement of airfares in relation to a flight date, that is to say, price discrimination application based on the time of a ticket purchase. Based on data on airfare movement on ten most frequent lines, authors have analysed whether airfares monotonically increase or decrease as the date of flight approaches.

Key words: Price discrimination, airlines, market participation, airfares.