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General Chat Topics >> In the news >> Ryanair due to pull out of Reus Airport
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Message started by RiumarPat on Jun 23rd, 2011 at 7:57pm

Title: Re: Ryanair due to pull out of Reus Airport
Post by ColinB on Jun 24th, 2011 at 10:23pm
The most important department of any airline is a little known one called yield control.  This is run by actuarists who work with algorithms to calculate the highest revenue production based on (such as) lead time to flight, special events occuring near the flight, historic seat occupancy for that period.......to cut it short, the earlier you book the seat the cheaper it is, providing no one else wants to fly that day.   If you leave it late then you're desperate and they can hit you with a high price that you'll pay.   All flights have a break even load factor (ie. some scheduled airlines need 65% occupancy just to pay the direct operating costs).  Low cost carriers (LCCs) such as FR and EZY have far more complex algorithms based on for example the amount of money the local council or airport has paid into their coffers to attract them in the first place, the amount of time they hold your money earning interest....these funds will skew the charges they need to make to the passengers.   All in all, fellow forumites, FR has bled as much out of the region as they can get and now they're off.  Tough luck on all those who have set up homes in the catchment area, they are of little consequence to the shareholders of the company.  So do not bleat.  You have had advantage of the cheapest airfares since fleas started riding on the backs of ducks.  Go now and find alternative airports because this is the time of the fat getting fatter and tough luck to the rest.  It's called capitalism. 

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