Re: destination versus routing pricing

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> why would any
> business (especially a capital and operating cost intensive one) want
> the revenue model to be completely disconnected from the cost structure?

I think that Dennis's point has to be THE most important to remember when you're
trying to figure out airline pricing and, ultimately, airline profit and loss.
Airlines usually ignore their costs and base their fares on market competition
or lack there of.


----- Original Message -----
From: "Dennis W Zeuch" <DZTOPS@xxxxxxx>
To: <AIRLINE@xxxxxxxxxxxxxxxxx>
Sent: Thursday, September 18, 2003 1:22 PM
Subject: Re: destination versus routing pricing


> why would any
> business (especially a capital and operating cost intensive one) want
> the revenue model to be completely disconnected from the cost structure?
>
>
> Now you're trying to think rationally and logically but remember its the
> airlines - they have never done things as expected.  I think they roll dice or
use
> a crystal ball for answers to their problems.
> Dennis

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