FlyerTalk Forums - View Single Post - Legacy Airlines Competitive Disadvantages
Old Apr 22, 2008 | 3:33 pm
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chicagorich
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Originally Posted by undersky
Serving small cities is not as lucrative as serving large cities. Fewer population and smaller planes go against economic of scale and are more prone to market fluctuation. Unlike large cities with diversified customer base that provides a steady and predictable revenue stream, it is difficult to maximize profit from small cities where customer bases often come from limited sources.
What is the impact of the Essential Air Services program in your analysis, where the federal government directly subsidizes airlines for providing air service to certain small cities.?

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