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On Thu, 5 Feb 2004, Mike Miller wrote:
> Are you saying that Glasgow-Stockholm roundtrip is only $40, taxes
> included? That is remarkable. I don't see how they can make money,
> especially if it is true that $32 of that is tax!!
Airfares are an almost perfect example of what's called perfect price
discrimination. If you have several people (business travelers such as
my self, specifically) who pay $1500/ticket to get there *NOW*, then you
can sell the rest of the empty seats on the airplane and make
incrementally more money. For all practical purposes, it costs the same
to fly a MD-80 from point A to point B whether there are 5 or 50 people
aboard. You may as well make anything you can on each seat to make an
incremental revenue.
--
--dlloyd
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