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Could it be because they have to file tariffs with regulatory agencies,
declaring their prices in advance? Bob Gardner "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" |
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In article , Bob Gardner wrote:
Could it be because they have to file tariffs with regulatory agencies, declaring their prices in advance? Probably not. SouthWest airlines, at least, offers cheap last minute fares to get the planes full. I often took advantage of this to take trips to see friends in SLC which I otherwise would not have made. Benefited me (cheap trip) and benefited SWA (they otherwise would have had an empty seat). Not surprising that the year after Sept 11, SWA were the only major to make money. They were the only major with a clue, it seemed. We have the same problem here with British Airways flying into Isle of Man Ronaldsway. They charge a king's ransom especially for last minute fares, and wonder why although traffic through the airport has increased the last year, why their passenger loadings have fallen. I just hope they don't wind up pulling out because they are the only airline that does through ticketing from Ronaldsway to the US. -- Dylan Smith, Castletown, Isle of Man Flying: http://www.dylansmith.net Frontier Elite Universe: http://www.alioth.net "Maintain thine airspeed, lest the ground come up and smite thee" |
#3
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In article , Bob Gardner wrote:
Could it be because they have to file tariffs with regulatory agencies, declaring their prices in advance? I thought that was what deregulation was about--removing that requirement. If they really have to do that, then Northwurst must have a department with thousands of people filing these constantly, since I see ticket prices for the same leg change several times in an hour. Of course, I have no idea what the requirements really are--I'm just reporting my experience as a consumer (package, that is). One possibility is that people on shorter hops might be better about actually taking advantage of last-minute fares--maybe no one would buy and advance ticket then. It sure does seem like a no-brainer, though. Mike Beede |
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