sethb

There is one other possibility; I don't know if it actually happens.

Service to CCC is subsidized, and the CCC government requires a certain number of passengers to be flown there for an airline to get the subsidy. So the airline prices tickets to CCC lower, in order to get that subsidy. Buying AAA-BBB-CCC and not flying the last segment deprives the airline of actual revenue.

channa

Generally speaking, subsidized markets are smaller towns and more expensive than major, unsubsidized markets.

There are always exceptions, like $2 fares to Lebanon, NH.

drsmithy

I'd argue the economics aspect is completely transparent and clear-cut. The airline wants to milk as much money out of you as possible and you want to spend as little as possible.

drsmithy

Which is not, so far as I can glean an understanding of it, relevant here.

I didn't say it wasn't clear.

Sure I did. It's kind of inherent.

Like I said. Arbitrary.

"Load management" is just a euphemism for "complex and opaque profit maximising".

I don't think that at all. Never suggested anything of the sort.

"Arbitrary" is not a synonym for "random".

JW76

^^

The airline should be happy they are getting a dollar from their passengers at all. If they create a loophole and smart people use it to save money, then they should fix their internal systems, not lash out at their customers. How about just charging everyone a flat rate per mile flown? I'll just top up my "UA Account" with 50,000 miles and then fly around the world till the account is all used up. That'd solve the problem and be absolutely equitable to both parties -- fly more, pay more.

The current system is set up by airlines to maximize profit, and the fact that it is highly complex and gives rise to loopholes is ENTIRELY their fault. If they don't like the way THEIR system works, then they can change it.

s0ssos

Slightly OT, but what about theft from airlines? How I don't fly (cause I have a change of plans) and United (or another airline) doesn't refund me my taxes and fees. So, they just keep it up?

s0ssos

You don't seem to understand. What is your definition of "theft"? Theft isn't the same as breaking a contract. I don't know anybody who would say that those two are equivalent. Even a stupid jury wouldn't consider that the same.

Your problem is you are equating lost profits to theft. Just because a business loses money doesn't mean the person is a thief. Well, so if a person returns an item, the business loses money. The person is a thief, right?
You may respond that the business had an agreement to allow returns. Well, what if they didn't? Sometimes (at least in Europe) they have to take back faulty products. So, what do you say of that?

Secondly, what right does a business have to control what people do with their product? At least in the tech world, not much. People buy it and do with it what they want. Can you sue them for that? Sure. But not much will come of it.

LHR/MEL/Europe FF

I think this is correct.

in the 'doctored boarding pass' scenario you are setting out to take something for which you haven't paid.

in hidden city ticketing you have paid the asking price, just not used the whole of what you have purchased.

the airlines themselves admit there is a NO criminal liability... so there is no fraud, no theft. they are saying it is a breach of contract at worst, and merely unethical at best.

84fiero

I'm not defending the airlines' pricing and ticketing policy by any means, and with the consolidation happening in the U.S. perhaps some of those areas need to be addressed as consumers are more and more at the mercy of the oligopoly...and the one-sided contracts of carriage are as onerous as credit card agreements.

But let's at least frame it correctly. You're not buying a product, you're buying a service (transportation). As has been noted numerous times, it's a false analogy to compare it to buying a product and using/consuming it differently. The service is sold based on a particular contract that has terms regarding the pricing basis.

Whether those terms, or those pricing methodologies, are fair, valid, good, or bad, is another matter.

drsmithy

A masseuse charges $60 for half an hour, $100 for an hour and $150 for two hours.

A 90-minute massage would be priced as an hour + half an hour, $160.

I book a two hour massage and leave after 90 minutes.

Has the masseuse lost $10 ? Have I stolen from them ? Or do they now have half an hour of extra free time before their next client arrives ?

ROCAT

Yes you cost them money as free time is bad, it means they could have booked someone else in that slot. The next time you call them you might have a hard time finding availability.

nsx

Not exactly. As I posted way back in 2011:

LondonElite

Probably the best analogy I've read on this!

sethb

I've never heard of a theater trying to prevent patrons from walking out after the first act

The issue arises here: Airlines A, B. Cities X, Y, Z. Airline A has direct X-Y and Y-Z; Airline B has direct X-Z and Z-Y.

Each airline charges $500 for its direct flight. There's plenty of excess capacity Y-Z, in part because both airlines fly it.

In order to compete to the other city from X, each airline charges only $400 for the connection, X-Y-Z (Airline A) or X-Z-Y (Airline B). Obviously, hidden-city ticketing will get a direct flight cheaper. But if it's allowed, what do you think will happen? I think the price of the connection will rise to $500.

drsmithy

More imaginary money.

I doubt it. "Would you like to definitely make $150, or maybe make $220" ?