Quote:
Given that there are higher price elasticities for the range of tickets covered in this determination, especially single and return fares, the resulting loss of patronage from the requested average 10% increase across many ticket types could have negative consequences.
These consequences can potentially be worsened in a competitive environment where alternatives exist and also where the positive value perception that customers have for these products is diminished.
|
The determination document is some piece of work and is particularly cynical. Reading between (and to some extent in) the lines, they have basically given IE what they wanted on monthly and annual tickets as they know that this market has no other real option and there is no competition.