Re:How United Airlines Went from “Friendly Skies” to Throwin...
by bogomipz on Thursday April 13, 2017 @03:18PM
(#14110088)
>"If we as consumers are voting with our wallets, in most cases we're the ones who have accepted the new norm as acceptable in the spirit of chasing ever lower fares."
The consolidation of the airline industry and resulting lack of choices in the US has made voting with your wallets quite ineffective. Airline's have been practicing something called "capacity discipline" that ensures that reduces the number of flights and ensures that planes are always nearly full. Where are you seeing these "ever lower" fares? US airlines are flying fewer flights and certainly fewer direct flights these days in a practice called "capacity discipline" which is designed to make sure the planes are as full as possible. The fares on a fuller flight tend to be more expensive than fares on empty flight.
Also the reason why Ryan Air is so successful is not because they charge for every possible amenity but rather they have the cheapest labor costs in the industry Labor - 6€ per passenger [1]
The consolidation of the airline industry and resulting lack of choices in the US has made voting with your wallets quite ineffective. Airline's have been practicing something called "capacity discipline" that ensures that reduces the number of flights and ensures that planes are always nearly full. Where are you seeing these "ever lower" fares? US airlines are flying fewer flights and certainly fewer direct flights these days in a practice called "capacity discipline" which is designed to make sure the planes are as full as possible. The fares on a fuller flight tend to be more expensive than fares on empty flight.
Also the reason why Ryan Air is so successful is not because they charge for every possible amenity but rather they have the cheapest labor costs in the industry Labor - 6€ per passenger [1]
see the section"Operating Model: Execution":
[1] https://rctom.hbs.org/submission/ryanair-the-lowest-cost-air...