A network carrier serves some small cities close to its hub, Microeconomics

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A network carrier serves some small cities close to its hub

A network carrier serves some small cities close to its hub with regional jets which have much higher seat-mile-costs (CASM) than larger mainline jets. The average fare from these cities to the hub does not cover fully allocated costs. Is this rationale?

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Microeconomics: A network carrier serves some small cities close to its hub

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Microeconomics: A network carrier serves some small cities close to its hub

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