<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by Topster:
I agree with you FOH about capacity reduction, but really, what is the marginal cost (cash flow) to produce the marginal revenue (cash flow) from an unsold seat? Provided that the usual "availability" constraints are attached to a promotional sale, I think airline cash flow would be greatly enhanced by aggressive (targeted) discounting. </font>
I think we agree on this. Figuring out how much people are willing to pay would definitely include deeply discounted fares. I've seen a lot of them out there, which has certainly resulted in at least one additional passenger.
Last week I booked a round trip from Seattle to Evansville, Indiana, a small regional airport, for one of my parents. The fare including all taxes was $235. It required a
3 day advance purchase and had
no minimum stay requirements.
I'm planning on going on a trip soon and want to take advantage of the low fares.