Airplane seats spoils faster than strawberries
What some fresh airline ceo's with no relevant airline background don't seem to get is that airplane seats are fresh produce. When the plane have taken off the unsold seats are no longer sellable so spoilt. Actually even 2 hours before it takes off. That is why hibernation is a bad solution for an airline. You can hibernate the planes, at a cost, but not the potential seat kilometers those planes could have produced.
Every day you have a potential for selling so and so many seats based on your resources available and they largely need to be sold before the day begins. It's like preselling strawberries you haven't picked yet. Every day you know there will be so and so many to sell and by the end of the day they are spoilt and thrown out. Even though fruit and veg are easier because some can be sold on sale tomorrow and in worst case sold as animal feed thereafter. Seats not sold and routes not flown, and where the plane haven't been utilized elsewhere, have no value but still racked up a cost.
Airlines like Ryanair understand this principle so constantly adjust prices to fill as many of an airplane seats as possible. And if that is not enough they aggregate and use the plane for something else. Remember until the night before they are only sold as seats on virtual planes. They only becomes physical planes when engineering assign tail numbers the night before.
Every day you have a potential for selling so and so many seats based on your resources available and they largely need to be sold before the day begins. It's like preselling strawberries you haven't picked yet. Every day you know there will be so and so many to sell and by the end of the day they are spoilt and thrown out. Even though fruit and veg are easier because some can be sold on sale tomorrow and in worst case sold as animal feed thereafter. Seats not sold and routes not flown, and where the plane haven't been utilized elsewhere, have no value but still racked up a cost.
Airlines like Ryanair understand this principle so constantly adjust prices to fill as many of an airplane seats as possible. And if that is not enough they aggregate and use the plane for something else. Remember until the night before they are only sold as seats on virtual planes. They only becomes physical planes when engineering assign tail numbers the night before.
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