"Jay Honeck" wrote in message
news:fIspd.85397$V41.82999@attbi_s52...
Here's a mystery that I just cannot answer:
To fly to Las Vegas from Chicago costs $99.00. (For example.)
To fly to Cedar Rapids from Chicago costs $300.
Naturally, at that price practically no one flies on that plane into Cedar
Rapids.
Question: WHY do the airlines that fly into Cedar Rapids insist on flying
back and forth with mostly empty planes? Would it not make sense, say,
30
minutes before departure, to drop the price until the plane was full?
This
is basic "Econ 101" -- if empty, lower the price until demand matches
supply.
Their actions seem to defy logic. In the lodging industry, you're going
to
find rooms are discounted much more aggressively after 10 PM than they are
at 3 PM, simply because no innkeeper wants to sit empty, and the odds of
being able to charge full-rate at that time of day are slim. Yet no
airline
seems to do it this way, at least on the short hops.
If it were MY airline, I'd sure as hell rather make a hundred bucks than
nothing!
There must be something else in play here -- anyone know?
--
Jay Honeck
Iowa City, IA
Pathfinder N56993
www.AlexisParkInn.com
"Your Aviation Destination"
Lack Of Usage Of Basic "Econ 101" in GA Aviation will be its downfall,
Happens to flight schools all the time. Look at the Crooks at Columbia
Flight Center they lose instructors, & customers because they put profits
before service. They order parts with out your permission ect. They charge
way to much for their rental aircraft you never know what the rates are
going to be tomarrow. They were so cheap they did not want to spend $6.00 to
develop my solo photos because there was still 5 exposures on the camera. 6
months later even after offering to pay for the development they refused and
then said they lost the camera. 1 Moment in history lost for ever, 1 Page
blank in my scrap book, 1 customer lost for life and no word of mouth
advertizing. All they get from me Stay AWAY.