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Yeah....that's what I told my bosses when they told us managers to start referring to the airline as "NWA".
STRAIGHT OUTTA COMPTON, BAY-BEE!!!
Tony
It depends upon the market that you're flying out of, mainly. If a particular airline can gain enough of the available seats flying out of that city, chances are you're going to see a rise in prices.
This is not always the case, but our yield management folks will examine tendencies on that route and try to set the fare that will capture enough paying passengers to turn a small profit on the flight. Honestly, sometimes it's just a SWAG ("scientific, wild-ass guess"), though. :-)
We have one flight in particular (domestically) in which our total profit on the segment is $8.35. Some routes are loss-leaders, too. But, an economy of scale (based on 1500-1600 daily flights and including the always money-making international flights) normally helps an airline to make money. Naturally, in the post-9/11 environment, certain costs are going to have be realigned with actual revenues. Therein lies the rub.
Tony