Airlines assign prices to their services in an attempt to maximize profitability. To do this well requires yield management technology and pricing flexibility.

They use differentiated pricing, a form of price discrimination, in order to sell air services at varying prices simultaneously to different segments. Factors influencing the price include the days remaining until departure, the current booked load factor, the forecast of total demand by price point, competitive pricing in force, and variations by day of week of departure and by time of day.

A complicating factor is that of origin-destination control ("O&D control"). Someone purchasing a ticket from say, Melbourne to Sydney for $A200 is competing with someone else who wants to fly Melbourne to Los Angeles through Sydney on the same airplane, and who is willing to pay $A1400. Should the airline prefer the $A1400 passenger, or the $A200 passenger + a possible Sydney-Los Angeles passenger willing to pay $A1300? Airlines have to make hundreds of thousands of similar pricing decisions daily in their markets.

In contrast, low fare carriers usually offer straightforward, preannounced, simple prices. They can do this by quoting prices for each leg of a trip; passengers simply add them together to construct a full journey.

The advent of advanced computerized reservations systems in the late 1970s, most notably Sabre, allowed airlines to easily perform cost-benefit analyses on different pricing structures, leading to almost perfect price discrimination in some cases (that is, filling each seat on an aircraft at the highest price that can be charged without driving the consumer elsewhere). The intense nature of airfare pricing has led to the term "fare war" to describe efforts by airlines to undercut other airlines on competitive routes.

Computers also allow airlines to predict, with some accuracy, how many passengers will actually fly after making a reservation to fly. This allows airlines to overbook their flights enough to fill the aircraft while accounting for "no-shows," but not enough (in most cases) to force paying passengers off the aircraft for lack of seats. Since an average of 1/3 of all seats are flown empty, stimulative pricing for low demand flights coupled with overbooking on high demand flights can help reduce this figure. - from Wikipedia.org

On the early of Sep. 1994, President Yasser Arafat issued a Presidential Decree No. 87/94 to establish the Palestinian Civil Aviation Authority and appointed Mr. Fayez Zedan as the chairman. Mr. Zedan was assigned to initiate the organizational infrastructure for aviation in Palestine including the formation of the structural and executive administrations of the the Aviation Authority, building airports, establishing and operating the Palestinian Airline Company.

The recently opened Gaza Airport offers scheduled flights to nearby countries. Direct air travel is also available through Lod Airport.  Jordan and Egypt have open borders with palestine. By sea, Palestine can only be reached through ferries from Haifa, Israel. There are regular ferries to/from Haifia, Greece, Cyprus, and Egypt.