FlyerTalk Forums - View Single Post - Lufthansa will close the flight singapore-jakarta?
Old Jul 31, 2012, 12:56 am
  #12  
IAN-UK
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Originally Posted by NA-Flyer
I am not sure if that is correct. I have taken many times the sector SIN-CGK-SIN and to my surprise the plane goes with almost empty seats in all classes.

I think LH stopped flying to CGK because of low loads not just low yields.
It's revenue yield from passengers and cargo, not load-factor, that is stacked up against costs.

The $$$$ of operating tag flights such as SIN CGK are scary. The opportunity cost of taking up 4 hours of a wide-body aircraft + crew costs and all the other direct operating costs won't make much sense unless sector revenues and network contribution are significant. Load factors on the tag sector itself give very little indication of the underlying yields.

The few tags that are left on the LH network - I think only SGN and KUL - are unlikely to be safe from analysis by the fun-loving accountants at LH HQ.
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