Cross elasticity: Demand for Airline Movie Systems

The increase in the price of aviation fuel is causing airlines across the world to think about how they can control costs and the obvious solution is to reduce the weight on flights to increase fuel economy even if only by a slender amount. US airways has announced that it plans to remove the in-flight entertainment systems from many of its flights in an effort to cut down on the amount of fuel - the 500lb movie systems will be discarded from domestic flights from November onwards - the decisions affects around 200 aircraft and is estimated to save around $10 million a year. It will keep movies in its widebody aircraft for international flights and trips to Hawaii (a different type of consumer demand?)

The decision is possibly bad news for Hollywood movie producers whose revenues from selling the rights for airlines to show movies might take a hit. But much depends on whether other airlines follow suit. Demand for the next generation of super-light back of seat entertainment systems is likely to grow in the coming months.

Unit 4 Macro: Focus on India - World’s Cheapest Computer [26 Jan 2012]
Beyond the Bike - What is the value of life in Africa? [19 Nov 2011]
Pasty Prices - Something to Chew Over [19 Nov 2011]
Unit 3 Micro: Time of Use Pricing for Energy [2 Nov 2011]
Unit 3 Micro: Economies of Scale and the Kinect [31 Oct 2011]
Unit 1 Micro: Google Maps to Charge for Usage [31 Oct 2011]
Unit 3 Micro: Price Discrimination in the E-Book Market [31 Oct 2011]
Unit 1 Micro: Is the Sun Dipping on Solar Subsidies? [27 Oct 2011]
Unit 1 Micro: University fees and elasticity of demand [24 Oct 2011]
Unit 1 Micro: Economists attack food price speculation [24 Oct 2011]
Unit 3 Micro: Tesco Behaving Badly - Price Anchoring [17 Oct 2011]
Unit 1 Micro: Homework Assignment on Market Prices [2 Oct 2011]
Unit 1 Micro: The Supply and Demand Rap! [28 Sep 2011]
Unit 1 Micro: Exercise on Equilibrium Market Prices [27 Sep 2011]
Putting the “discrimination” into price discrimination! [26 Sep 2011]
Unit 1 Micro: Exercise on Market Demand [25 Sep 2011]
Unit 2 Macro: Value Added in Production and GDP [11 Sep 2011]
Unit 4 Macro: Baltic Dry Index and Global Weakening [19 Aug 2011]
Unit 1 Micro: The Price of Football [2 Aug 2011]
A2 Micro: Price Discrimination [19 May 2011]
A2 Micro:  Monopsony Power in Markets [19 May 2011]
A2 Micro: Minimum Efficient Scale [18 May 2011]
AS Micro: What´s really behind the oil price rise? [10 May 2011]
AS Micro: Rising Global Food Prices [2 May 2011]
A2 Micro: EU Aviation - State Aid and State Ownership [28 Apr 2011]
Wiki Revision: A to Z on Monopoly [23 Apr 2011]
AS Micro Revision: Public and Private Goods [21 Apr 2011]
Key AS Micro Terms: Costs and Profits [16 Apr 2011]
Key AS Micro Terms: Prices [15 Apr 2011]
Information Failures: Tesco and Second Hand Cars [3 Apr 2011]
AS Macro Key Term: Relative deflation [2 Apr 2011]
AS Micro Revision: Banana Prices [1 Apr 2011]
OCR F585 June 2011: Data Charts [30 Mar 2011]
Keeping Track of UK Macro Objectives [18 Mar 2011]
Timetric: Mortgage Lending and Mortgage Rates [14 Mar 2011]
AS Macro Revision: Investment Spending [12 Mar 2011]
Information Failure: The UK Illicit Drug Market [28 Feb 2011]
Ways to watch movies - cross elasticity of demand in action! [3 Feb 2011]
EU Economics: Hopes for a low carbon future in Europe [3 Feb 2011]
Shorting the market - the vultures target HMV [23 Jan 2011]
Economics Q&A: How might rising food prices affect food retailers and manufacturers in the UK? [16 Jan 2011]
A Motorbiking Triumph [13 Jan 2011]
Economics Q&A: What are some of the benefits and drawbacks of a period of rising world food prices [4 Jan 2011]
Behavioural Economics - Public Policy and Behavioural Change [30 Dec 2010]
HMV on the brink? [9 Dec 2010]
OCR A2 Economics F585 (Feb 2011) - Price Volatility [8 Dec 2010]
Orange, iPads and the Lock In effect [29 Nov 2010]
Growth and Strategy at Domino’s Pizza [27 Nov 2010]
Energy Oligopoly - Price Investigation is Launched [26 Nov 2010]
Agflation - a new food price crisis in 2011? [18 Nov 2010]
Yet another airline cartel story….. [9 Nov 2010]
Watch out for the £7 chocolate bar! [9 Nov 2010]
The Market for Potash [30 Oct 2010]
Economics at the Movies- where have all the bees gone? [27 Oct 2010]
Economics at the Movies - Austin Powers and Inflation [23 Oct 2010]
Economics at the Movies - Hudsucker Proxy and Consumer Demand [21 Oct 2010]
Economics at the Movies - Billy Ray Valentine learns commodities [20 Oct 2010]
Economics at the Movies - Pretty Woman, Consumer and Producer Surplus [19 Oct 2010]
Picturenomics (1) - Congestion and Externalities [18 Oct 2010]
Lifting the cap on tuition fees - a question of price elasticity? [10 Oct 2010]
From heart transplants to watermelons - elasticity of demand [5 Oct 2010]
Two New Films on the Financial Crisis [2 Oct 2010]
Damien Hirst - Artist and Economist ? [30 Sep 2010]
Searching for the right price for water [30 Aug 2010]
Potash - a battle for grey dust that has become gold dust [26 Aug 2010]
Lesson Worksheet - Cross Price Elasticity of Demand [21 Aug 2010]
Lesson Worksheet - Price Elasticity of Demand [13 Aug 2010]
Cocoa Economics [30 Jul 2010]
AS Macro: Macroeconomic Performance [5 Jun 2010]
AS Macro Revision: Cost Push Inflation [31 May 2010]
Sugar price volatility - uncertainty for producers and consumers [29 May 2010]
Sterling and Exports - The Importance of Time Lags [29 May 2010]
Economics of the EU Revision - Carbon Taxes [26 May 2010]
Is the UK coal industry turning a corner? [24 May 2010]
Profit margins for ticket touts [23 May 2010]
A2 Economics Revision - Efficiency and Price Intervention in Markets [21 May 2010]
Alcohol pricing - an end to loss leaders? [21 May 2010]
Kaletsky on the Phillips Curve [7 Apr 2010]
End of the Road for the Car Scrappage Scheme [31 Mar 2010]
OFT report finds welfare gains from liberalising pharmacies [23 Mar 2010]
Mobile roaming charges and information failure [22 Mar 2010]
Price discrimination - Tesco and One Stop [22 Mar 2010]
Free health care and government failure [21 Mar 2010]
Behavioural economics - lessons from an ad man [9 Mar 2010]
Metal prices on the rise again [16 Feb 2010]
Supermarkets accused of price gouging [13 Feb 2010]
Labour Peer attacks free care for the elderly [3 Feb 2010]
2009 - a desperately difficult year for airlines [27 Jan 2010]
50-year decline in housing affordability [20 Jan 2010]
Bangernomics and asymmetric information [13 Jan 2010]
Contestable Markets - Google launches the Nexus One [6 Jan 2010]
Is UK manufacturing turning a corner? [4 Jan 2010]
Economics Movie Theatre [1 Jan 2010]
Assorted Links (1 Jan 2010) [1 Jan 2010]
Cadbury’s share of UK confectionery market melts away [17 Dec 2009]
Tories plan break up of energy oligopoly [4 Dec 2009]
Price Volatility in Markets - Teacher Presentation [19 Nov 2009]
Inflation - Causes and Effects (Teacher Presentation) [15 Nov 2009]
Gold price brings prospectors to the Highlands [13 Nov 2009]
The power of words… [12 Nov 2009]

ECONOMICS TEACHER RESOURCE NEWSLETTER

Join over 6,000 other Economics Teachers in the UK and around the world who receive the tutor2u regular Economics Resource Email Newsletter. Get special offers, first news of latest resources, teaching ideas, conferences and workshops + loads of great ideas for teaching economics from our blog authors.