Anti-trust laws and pricing. Global Airlines is a major low-price airline carrier for both domestic and international travel. The company guarantees the “lowest price” ticket for travel within the United States. The “lowest price” ticket guarantee does not apply for travel on Monday mornings and Friday evenings, which are busy travel times for business travelers.

1. Do these pricing practices of Global Airlines violate any anti-trust laws? Why or why not?

2. Why is Global Airlines not offering a price guarantee for flights on Monday mornings and Friday evenings? Do you agree with this policy? Explain briefly.

3. What other factors should Global Airlines consider before implementing these pricing policies?

 

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