There does have to be some variable pricing, to manage demand. Lower off peak fares encourage people to spread their travel out across the whole day. However, I agree that the problem with the "market forces" argument put forward by A320Fan is that market forces do not operate in the majority of hub markets. In large hubs, there is usually a dominant carrier or a duopoly which impedes the effective entry of new competitors and prevents the market from working effectively. In addition, the Terms and Conditions imposed uniformly by virtually all airlines are abusive, anti-competitive and mean that consumers have effectively no choice. These type of market distortions are normally managed by regulation, but the domestic US market has a series of anti-trust exemptions, market protections to prevent competition and ownership restrictions. The international markets are carved up by treaty and serves to protect national interests and pride and not the consumer.
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