Predicting Airfare based on New Entrants

Introduction to the Problem

The following problem occurred in the United States in the late 1990s when many major U.S. cities faced airport congestion issues, partly because of the 1978 deregulation of airlines. Both fares and routes were free from regulation, and low-fare carriers such as Southwest (SW) Airlines began competing on existing routes and starting non-stop service on previously unavailable routes.

After SW Airlines started flights on some routes, it contemplated expanding the routes served. The task is to predict airfare on new routes for SW Airlines. The database contains data collected between Q3-1996 and Q2-1997 (i.e., between the third quarter of 1996 and the second quarter of 1997).

The question that will be of interest in the analysis is the effect that the presence or absence of SW Airlines has on FARE.

The report was produced using Rmarkdown, and the font code was in my Github (LINK HERE).

I strongly recommend seeing this project on a computer/laptop with a higher display than a smartphone.

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