- Council on Wage & Price Stability - https://cowps.mercatus.org -

Impact of Proposed SST Flights on Pan American and TWA

In estimating the demand for a wholly new travel option such as the SST, many assumptions and estimates must be made that greatly reduce the reliability of the projections. Lack of time and resources also handicapped this effort. However, I believe some reasonable inferences can be made based on the limited data presently available and conventional demand theory. The major finding of the investigation is that compared to TWA and Pan American’s total passenger generated revenue, the diversion of revenue envisaged by the limited flights of the Concorde requested of the Federal Aviation Administration by British Airways and Air France would be small…