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The fare estimation model proposed in this paper was set up by analyzing the domestic United States air transportation market 2005 year database. A division analyses into seven different studies is presented. There exists substantial fare dispersion in the airline transportation industry for the full-service carrier market whilst very little dispersion can be found for the low-cost carrier market. Both airlines business models were also divided into four different markets. Major fare dispersion has been found for the routes dominated by full-service carriers without the presence of a low-cost carrier and the presence of low-cost carriers make full-service carriers low fares. Routes dominated by low-cost carriers without the presence of full-service carriers price routes with more dispersion than the routes fighting with full-service carriers.
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