NO PRICING POWER:

Airlines fail to implement rate hikes on U.S. flights (DAVID KOENIG, 3/22/05, Associated Press)

Another round of airline fare increases faltered Monday as two carriers backed down, including Continental Airlines, which had started the price hikes of $10 per round trip on many U.S. flights to offset rising fuel costs.

The fate of the increase -- it would have been the third in less than a month -- was uncertain, however.

In a world where companies have no power to boost prices because of competition, it's hard for the inflation ratchet to start biting.

Posted by Orrin Judd at March 22, 2005 7:39 AM