Wall Street Journal Article - Amy Chozick, "Discount Airlines Hit Latin America," The Wall Street Journal, June 8, 2005, p. D1 & D12

Summary Travel since 9/11 has been on the rebound and the discount craze that has been happening in the United States, Europe and Asia has now started to take flight in Latin America. Travelers in South America have had to endure long uncomfortable bus rides to travel any variety of distances. In the past year, four budget airlines have been able to expand and offer cross border trips and even flights to tourist areas at costs …

…two demand determinants, price of other goods and government regulations, cause the shift back in demand. This is step 1 shown by the arrow creating the new demand curve. The excess supply is now created shown by arrow 2 resulting in a lower price. Next, step 3 or arrow 3 takes place with a reduction in quantity supplied. As a result of all of these steps, the new equilibrium is shown has moved from point A to point B.