Originally Posted by
jdrtravel
I guess I still don't understand this service from a business standpoint. Same day fares on this route are usually under $500, and if booked in advance can be around $150. What makes this profitable, and why not other routes? Is it because its such a short route flown by RJ's?
I'm wondering if this isn't a sort of "loss leader". DL doesn't care about the people buying $39 AP fares, but might care about those buying the last minute fares. ie: the same people who, having tried DL and found the in flight service better than expected, might consider buying a last minute LAX-TYO, LAX-SYD, or SFO-JFK J ticket.
Given that the Shuttle introduction was more about amenities than frequency (DL was already at 12x or 13x daily as mentioned upthread), the incremental investment here is pretty low.