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Old Nov 6, 2011 | 6:05 am
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WHBM
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Originally Posted by ericliv
I'm fairly new to flyer talk and have become quite addicted. I've been reading with interest a lot of the reports. I'm very puzzled why Ex-EU flights are much cheaper when they are obviously having to travel further.
The key point is that what is charged, the revenue, has absolutely nothing to do with the costs of providing the service. This is a common fallacy of transport service provision. The airline Commercial department has the task of maximising overall revenue for a flight, and they do. In a comparable manner Flight Operations have the task of minimising the costs. Two separate calculations. Upper management bring the two together.
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