Model 1 was the initial model estimated. As expected, airfare and flight time are highly significant. The comfort attributes of video on demand and seat pitch are also significant. However, carbon tax is only significant at
the 41% level and the number of stops at the 30% level. Seat reservation is of the wrong sign, but is in any case only significant at the 42% level. The value of travel time savings (VTTS), at AUD35.78 per hour of flight time, seems acceptable. The fact the sensitivity to stop over time is slightly lower is also consistent with intuition, with such a long flight. Willingness to pay (WTP) for reducing the number of stops is low at AUD19.36 per stop, but must be treated with caution in any case given the low significance level for the number of stops. WTP measures for the comfort attributes seem quite plausible for a long haul flight. Respondents are willing to pay AUD122.63 to have personal TV screens instead of shared TV screens, where the WTP for on demand TV is even higher, at AUD218.04. WTP for seat pitch might seem a little extreme at AUD70.64 per inch, but given that the seat pitches shown range only from 31” to 34”, this represents a cost of AUD211.92 for the largest seat pitch over the smallest. •