Runway Closure to Affect Airfares?
I am blogging in reference to an article from Bloomberg Businessweek entitled "JFK: Close a Runway and Charge More." This article spoke of how a runway at JFK International Airport was being closed for 120 days for widening. This is being done to make the runway capable of handling the new Airbus A380, an even larger jumbo jet than what they are accustomed to. They are decreasing arrivals and departures, each by 250 per day. The question posed is whether or not the decrease in the supply of arrivals and departures will reflect an increase in the price for airfares during this 120 day period. The general consensus is that it won't. This is due to the fact that many of the airlines aren't filling all of the seats on their current flights at JFK, leaving some excess capacity. This is also due to the fact that Laguardia and Newark Liberty International airports are all relatively close and all have some excess capacity. When these other options are considered, demand for tickets at JFK will most likely not increase enough to justify higher airfares. On the flip side, when the runway is completed, being able to accommodate the larger airplanes may increase supply enough to lower the price of some flights.