Fecking Cheap Airfares

[ScottM]

I think the language is NSFW. But only if you work in Ireland.

This is really funny and so true.

I wonder if the airlines even care that when the ala carte their product and then annoy the heck out the customer that they create a zero brand loyalty and a customer that is unlikely to want to use that airline again?

The smartest thing airlines did was the frequent flier program that creates a real brand loyalty.

 

[gismo]

I think the language is NSFW. But only if you work in Ireland.

This is really funny and so true.

I wonder if the airlines even care that when the ala carte their product and then annoy the heck out the customer that they create a zero brand loyalty and a customer that is unlikely to want to use that airline again?

The smartest thing airlines did was the frequent flier program that creates a real brand loyalty.

I suspect that one of the main motivations for the ala carte approach to ticketing is to avoid paying the FAA for the entire cost of each ticket. FAA bills on the "fare" portion of the ticket, all the extra "fees" don't get taxed.

 

[ScottM]

I suspect that one of the main motivations for the ala carte approach to ticketing is to avoid paying the FAA for the entire cost of each ticket. FAA bills on the "fare" portion of the ticket, all the extra "fees" don't get taxed.

I more than suspect that to be the case.
But one has to wonder if the extra profit is greater than the lose of goodwill. Hard to quantify the latter, but it seems to be something that some airlines do value. While I am not a SW flier I know they do value a lot of repeat business.

 

[Mandy]

Ryan Int'l. Michael O'Leary. He's considered standing room only flights and charging for potty use. Anything for free advertising.

 

[Tom-D]

What's a "P" ?

 

[ScottM]

What's a "P" ?

Pence as in 100 pence equal a pound. The Pound Sterling is still the unit of currency used in the UK. When the UK converted to New Pence in 1971 that is how they set it up. Prior to decimalization in 1971 1 penny was worth 5/12p and a shilling was worth 10p

 

[steingar]

I suspect that one of the main motivations for the ala carte approach to ticketing is to avoid paying the FAA for the entire cost of each ticket. FAA bills on the "fare" portion of the ticket, all the extra "fees" don't get taxed.

I always figured it was so they could be the cheapest when you looked them up on Travelocity, or whatever.

 

[Jeanie]

What's NSFW?

 

[ScottM]

What's NSFW?

Not Safe For Work.

 

[EdFred]

I suspect that one of the main motivations for the ala carte approach to ticketing is to avoid paying the FAA for the entire cost of each ticket. FAA bills on the "fare" portion of the ticket, all the extra "fees" don't get taxed.

I more than suspect that to be the case.
But one has to wonder if the extra profit is greater than the lose of goodwill. Hard to quantify the latter, but it seems to be something that some airlines do value. While I am not a SW flier I know they do value a lot of repeat business.

Since the taxes just get passed along to the ticket buyer anyway, I don't see how having a lower price is a driving force for the traveler to pay less taxes. Pretty sure it's just so their fare pops up to the top of the "lowest to highest" list.

 

[ScottM]

Since the taxes just get passed along to the ticket buyer anyway, I don't see how having a lower price is a driving force for the traveler to pay less taxes. Pretty sure it's just so their fare pops up to the top of the "lowest to highest" list.

If airfare is $100 per ticket and the federal tax is 10% the airline gets $90.

If the airfare is $90 and the fee is $10 for a boarding pass the tax is $9 on the $90 ticket cost and $0 on the $10 boarding pass. That means the airline gets $81 for the ticket and $10 for the fee for a total of $91. They offered the same service, charged the customer the same amount and made $1 more by having an ala carte system of fares.

 

[EdFred]

If airfare is $100 per ticket and the federal tax is 10% the airline gets $90.

If the airfare is $90 and the fee is $10 for a boarding pass the tax is $9 on the $90 ticket cost and $0 on the $10 boarding pass. That means the airline gets $81 for the ticket and $10 for the fee for a total of $91. They offered the same service, charged the customer the same amount and made $1 more by having an ala carte system of fares.

You have to add the Tax, not subtract it.
But if you go that route do it backwards like I would....
What do i want to make? $100, divide by 0.9...
Ticket price is $111.11 and forget the fee.