medhead
Suspended
- Joined
- Feb 13, 2008
- Posts
- 19,074
They are fixed and sunk *in the short term*. In the long term, all costs are flexible. It costs money to build the next version of an IT system. It costs money to buy the next plane. It costs money to rent and outfit a particularly sized lounge.
All this banging on about how profitable these fares are flies directly in the face of what the people actually providing the service are saying.
It also flies in the face of what *every other airline* in the world is doing.
Yet, somehow, without access to the actual books, any statistical data, or even any experience running an airline, this forum's in a position to state that QF's cutting off a profitable venture? Surely the reverse conclusion - that you're wrong - is far more likely?
Sorry but that is a joke. These changes do not make the seats anymore profitable. They are still going to sell the seats for the same cost, they are still going to struggle to fill the cheap seats. Now they have just encouraged people to look elsewhere making it even harder to fill the back of the plane. They simply are not going to get more of the higher fares out of this change. Seriously if the back of the plane is empty it is costing them money. Sorry but filling up the business cabin is not going to magically make profit without those cheap seats.
For the majority of my flights qantas is going to save themselves 650 points per flight. $6.50 if I'm generous. They're already 16% more expensive than the competition. They already save $6.50 from me via the luggage I don't check in and the meals I don't eat. Cutting the points like this will not make me spend more, it will make me save the 16% and fly with the BFOD. Simply point it is wrong to suggest selling the cheap seats is meaningless.