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> The problem is that the universal implementation is that the "no-frills" tickets end up being the same price as they were before when they included things lik
by School-Cotton 2y ago
> The problem is that the universal implementation is that the "no-frills" tickets end up being the same price as they were before when they included things like carry on bags while tickets that include such "luxuries" end up even more expensive, leaving every single passenger feeling ripped off.
Do you have any evidence for this or is it just vibes? Given that airlines have low profit margins and customers are extremely price sensitive it seems unlikely to be true.
- hiatus 2y ago> Given that airlines have low profit margins Low profit margins but companies like United can pay their CEO ~20MM?
- jmye 2y agoWeird thing to focus on. What do you think their profit margins would be with a $10 CEO, and why?
- School-Cotton 2y agoErm… yes? What fraction of United’s total revenue do you estimate 20 million dollars is?
- hiatus 2y agoWhy would we look at revenue? I can sell a dollar for 90c and have very high revenue. The CEO's salary is ~2% of profits. Their profit margins were ~5%.
- School-Cotton 2y agoAssuming your numbers are accurate, if they magically were able to pay their CEO $0, their profit margins would be 5.1% instead of 5%. What's your point exactly? How does this address my point that airlines are extremely price-competitive and will continue to be so?
- deleted 2y ago[deleted]
- klipt 2y agoJust basic inflation over time will make it feel true even if the increase is inflation and not "corporate greed"
- School-Cotton 2y agoExactly, which is why I suspect this feeling is based on vibes rather than evidence. Also any number of other things can affect prices, e.g. fuel costs.