Airlines in a Crisis

Helpfull for airline pricing teams, actually just one person needed now, FareAutoCalc is an Android app that helps you set prices to rech profit on all your routes.  In its simplest form you enter the costs per flight, number of seats, how many fare classes (different price levels) you would like and at what load in percent you want to break even. Then it calculates the prices for each fareclass and the number of seats in same. You can manually enter the price rise scale for how much in percent you want the fare to rise between each fare clas. Or the app can do this for you using an even step in percent scale. It also has a Cost Detail page where you can enter detailed costs. This allows you to enter a number of set costs that could be the same for all flights, and some variable costs that varies by example flight distance. In principle its for a low cost carrier that don't have different seat classses and only differs in fare classes with different price levels where the price go...

In Norway we have several examples on this. Norwegian was/is hq'd at Fornebyu that haven't been an airport for over 20 years. Flyr was hq'd in the overexpensive Oslo city center. And Norse hq'd in Arendal, a town without an airport and even further from Oslo airport than Oslo itself. The train connections from hq to airport might be frequent and only take halve to an hour but its not the same as a 10 minute walk to oversee where your real operations happens. The place where your customers experience your service and most of your critical costs are spent. But also the costs most easily squeezable. Closenes let you reduce the costs before they occur rather than just financially overseeing the bills in accounts after they have happened. That makes a difference when it comes to reducing costs through strict control.  And low costs are the most important for being able to underprise your competitors. Something all the beforementioned airlines tried and tries because they see...

Let's take som quick math to Ryanair's O'Leary's claims that middle seat free is unsustainable. According to the Ryanair results presentation their average fare is 37 euro. Add 50% and it becomes 55.5 Still below Easyjet's current of 59 according to the same presentation. Will an extra 18 euro 50 cents really stop people from flying if it means they could be safer from viruses. It seems more of a pshycological problem for top brass rather than for any real economic reason, that airlines think they should be excempt from the physical distancing that every other business have to put up with. Some will always persist on squezing the last of capacity out of both materiel and staff, even at the cost of suffering, for others. The only thing a temporry 50% rise in ticket prices put an end to is O'Leary's plans about releasing a rush of Low Fares to get further market share from competitors, as long as they don't do just the same with borrowed money. I am su...