MEL_Traveller
Veteran Member
- Joined
- Apr 27, 2005
- Posts
- 28,983
Regardless of the "rights or wrongs" of this profit that QANTAS is making (and we can use the same argument for assisted booking fees for things you can't book yourself), it's currently a source of revenue (and profit) for QANTAS. Take that away, and either (a) shareholders get less money -or- (b) customers pay more.
Effectively this "ill-gotten" profit is subsidising current fares and shareholder returns. Take it way, and the subsidies also disappear.
If you disagree with this, then just simply explain who you think pays for extra costs (or loss of revenue) that a business incurs? My argument is that it's customers or shareholders. If not those two, then who?
and i don't have a problem with that per se - if it is backed up by a contract of carriage that says the airline will put you on another carrier if necessary to get you to your destination on time.
you can't tell your shareholders we are going to fill 380 economy seats on every a380 if you only have 371 seats in the cabin. you can try and sell the full 371 seats, and oversell to whatever extent you need to, but if you get it wrong... the extra 9 seats are not 'lost' revenue - it was never there to get revenue in the first place.