Originally Posted by carbonaddict
It's true that the European low cost airlines get
hidden profit by adding inflated tax/airport fee charges, and charging high prices for in-flight catering and other extras - see
http://travel.timesonline.co.uk/arti...088820,00.html in this week's Times. Nonetheless, they can still be incredibly cheap on occasion.
How is the profit hidden? You see the bottom line before you pull the purchase trigger. I guess I'm not quite sure what you're trying to say.
The business logic seems to be that only a proportion of capacity is available at this price but the ability to advertise it - and the subsequent 'word of mouth' publicity - creates a perception that the 'low cost' providers are always cheap.
I think you pretty much answered your own question: perception is everything in marketing. Why European consumers respond to €0 or £0 campaigns in a way that N.A. consumers don't to USD/CND $0 deals ... excellent question!
forumenture's conjecture seems a reasonable explanation, as least partially.
Originally Posted by mitchell
Frequent Flyer plans started around 1977?
1981, actually, AA the first, with UA close behind ... which means 2006 is the silver anniversary of why we're all here on FT today!
Hallelujah!!