8 ms·

I didn’t phrase this well, good call out. Now that I’ve thought about it what I’m actually trying to ask is… What would it take to drop flight prices 50%? Au

by gkiely 4y ago

I didn’t phrase this well, good call out. Now that I’ve thought about it what I’m actually trying to ask is… What would it take to drop flight prices 50%? Automated flights, a change in fuel technology, 0 marketing spend, reduced maintenance? More specifically, what is the bare bones cost to transport a human from point a to b, safely, in the same or less time it takes a flight.

rsj_hn 4y ago
> What would it take to drop flight prices 50%? 1. Free fuel. Fuel is the biggest cost of flights. For domestic flights, about half the ticket cost. 2. No taxes/government mandated fees (including fuel taxes). These are the second biggest cost, and for international flights, can easily be half the ticket price, but for domestic flights, about 20% of the ticket price. 3. Free planes. Planes are the third biggest cost. 4. Free administration. The Airline bureaucracy is the fourth biggest cost. 5. Free Stewardess labor. Fifth biggest cost. 6. Free Pilots.
- Ekaros 4y ago
  What about airport slots and fees?
  - rsj_hn 4y ago
    I rolled that into mandatory fees, assuming the airport was owned by the government. I know there are for-profit private airports, but I was keeping things simple. And yes, airports have to be paid for, as do planes, labor, administration, and fuel :) But we are assuming magical powers here, or the ability to provide all of these services for half the cost.
- bombcar 4y ago
  Reducing convenience - replace as many possible flights between city pairs with as few giant jumbos as possible. Instead of many many flights between LAX and CHI just have a few A380s in cattleclass. Saves a bit on fuel and a bunch on other costs. But people would be unhappy about it.
  - rsj_hn 4y ago
    Larger planes are more efficient, but then ridership drops off when you make things less convenient so it's harder to fill the planes. I'm pretty sure the airlines are already maximizing this and are not optimizing for passenger convenience :)

by gkiely 4y ago

rsj_hn 4y ago

> What would it take to drop flight prices 50%? 1. Free fuel. Fuel is the biggest cost of flights. For domestic flights, about half the ticket cost. 2. No taxes/government mandated fees (including fuel taxes). These are the second biggest cost, and for international flights, can easily be half the ticket price, but for domestic flights, about 20% of the ticket price. 3. Free planes. Planes are the third biggest cost. 4. Free administration. The Airline bureaucracy is the fourth biggest cost. 5. Free Stewardess labor. Fifth biggest cost. 6. Free Pilots.

Ekaros 4y ago
What about airport slots and fees?
- rsj_hn 4y ago
  I rolled that into mandatory fees, assuming the airport was owned by the government. I know there are for-profit private airports, but I was keeping things simple. And yes, airports have to be paid for, as do planes, labor, administration, and fuel :) But we are assuming magical powers here, or the ability to provide all of these services for half the cost.
bombcar 4y ago
Reducing convenience - replace as many possible flights between city pairs with as few giant jumbos as possible. Instead of many many flights between LAX and CHI just have a few A380s in cattleclass. Saves a bit on fuel and a bunch on other costs. But people would be unhappy about it.
- rsj_hn 4y ago
  Larger planes are more efficient, but then ridership drops off when you make things less convenient so it's harder to fill the planes. I'm pretty sure the airlines are already maximizing this and are not optimizing for passenger convenience :)