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Travel Discussion
Reply to ""Baby got back"? Beware of new Southwest policy "
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[quote=Anonymous]This isn’t just the airlines fault, if there was a market for an airline with higher ticket prices but larger and more comfortable seats, it would be filled. But in general there isn’t. When people shop for air travel, the vast bulk of people simply buy the cheapest fare available. This creates a competitive pressure to cram more people into smaller space. Airlines don’t have a huge profit margin, and it’s not at all clear there is much they can do about this. I think Warren Buffet said once that airlines, in the aggregate, have been a net destroyer of shareholder value since their inception. It’s a hugely capital intensive, thin-margin business, and this is the kind of product you get when customers overwhelmingly only care about price. [/quote]
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