FlyerTalk Forums - View Single Post - In depth analysis of the airline industry's problems
Old Nov 6, 2001 | 2:33 pm
  #14  
VicOsaki
 
Join Date: Jul 1999
Posts: 462
The world according to the airlines including Southwest is divided into two spheres. The business side and the leisure side. Of course, the two are not mutually exclusive, but for purposes of analysis, the universe is always thus segregated.

The business side is charged more because it demands more. Business demands flexibility. They demand a system that caters to their every whim. When the ordained miss judges the length of a meeting, he expects to get on a whatever flight he chooses. A system like this is expensive. It requires a considerable amount of inherent overcapacity.

Just as it's impossible to say which is the more important hand, it's impossible to say which is the most important traveler. Certainly in normal times the businessman contributes overwhelmingly to revenues, but the leisure traveler is important too. Remember that the airline business in a bit peculiar. There is nothing more perishable than an airplane seat. If you can get mom, pop, and the kids to get on board it's all gravy. The rub is, the family makes intricate calculations, for example, 4 X $199/ticket vs. 20 miles/gallon and on and on. Who is subsidizing whom?

WebFly is a momument to the business traveler an endless discussion of how to circle the square. That is, how to ride in luxury without the boss finding out. Southwest wisely doesn't aspire to that.
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