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But here the explanation is in economies of scale, not just consumer behavior. Lower cost flights are also cheaper to run, so airlines make more profit on scale
by coliveira 6y ago
But here the explanation is in economies of scale, not just consumer behavior. Lower cost flights are also cheaper to run, so airlines make more profit on scale, which drove out other operators. As a result, from the point of view of consumers these cheap flights give more flexible options in terms of schedule. This is not different from other industries, where cheaper products became the norm because the companies making them were so much more profitable on scale.
- dageshi 6y agoAir travel isn't an experience for most people. It's a necessary evil to get you from A to B. Most people may as well board a plane and go into some kind of hibernation for however long the flight is, hence why the only thing that matters to them is cost. Save money on the flight so you can spend it at your destination or on something you actually care for.