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Date: Thu, 16 Feb 2006 17:53:05 -0500
X-Mailer: Apple Mail (2.746.2)
Maybe we should add a few other points that may explain why we
observe wide ranges:
-Collusion (try to book a flight into a hub of a specific airline in
a market that has no antitrust enforcement and suddenly everybody has
the same prices...)
- and if you can't collude, then resort to slot management to keep
the competition out...
-Interfaces that don't work properly on the backend (as we could all
experience with Swiss for a while)
-Questionable business model overall: As a regular guy involved in
for profit business I am amazed how the airline industry manages to
find creditors that are willing to lose 90 cents per dollar invested
every 10 years or so.
Obviously, all this sophisticated yield management and modeling has
not resulted in a sustainable profit margin for too many players.
Received on Thu Feb 16 2006 - 22:27:59 PST
