10 thoughts on “The Economics Of Airfares”

  1. It depends on the reason for their congenital blindness – usually its a nerve problem, and no this won’t help.

    This (very cool) artificial retina is a replacement for damaged retinas (the CCD, if you will) and not the transmission medium (the nerves).

    Still, it’s a great start.

    1. Think you’re on the wrong post, but my point is that even if the signal can be provided, the adult brain may not be able to learn to make sense of the input.

  2. Many years ago, a friend of mine remarked that the airline ticket is unique among commodities: its price climbs continuously right up to the exact moment that it’s worthless. That was one of the most astute economic observations I’ve ever heard.

    1. C’mon people, it’s not worthless. If you paid for a ticket and miss the flight, you can always pay some exorbitant fee or go on the standby board or something to get on another flight. It is not like a concert ticket where you paid for the ticket and if you don’t make it to the concert, you don’t get to attend another concert.

    2. Furthermore, if you bought the ticket at the much higher price for buying it closer to departure, it is more likely on of those more flexible “business travel” fares?

  3. I don’t “get” what the guy is saying. Maybe he is talking about international rather than domestic service?

    That there is a separate First Class section of the airplane is something I remember back in my childhood. I remember Dad talking about a guy at work who as much as bragged that “the company” had to book him first class on account of him being a “big man” in more ways than one and Mom rolling her eyes on hearing it. This means there had to have been sections on the plane with wider seats prior to the rollout of Concorde and the Jumbo Jet.

    I also, kind of remembered that there was some kind of distinction between Coach and Tourist Class. But I thought that the serious segmenting of the market where you could be stuffed into the middle seat paying (or your employer) multiples of the two old persons on each side flying Super Saver who had been granted preferred boarding that you had to crawl over one of them to get to your seat, that this came with the Deregulation that started with Alfred Kahn under President Carter, placing this in the late 70’s?

    I also remember that the opening of the “fare wars” under deregulation was TWA instituting something called “Super Coach.” Between Chicago and Los Angeles, you flew on an aging 707 jet with an obvious fresh second coat of paint, especially assigned to this low-cost flying, where they redid the seats and you had a crammed-in one-class service. The other airlines countered with Super Saver, which was their newer DC-10s flying the same route, but where they instituted the 30-day advanced purchase, non-refundable, and Saturday stay thing.

    As to this thing about “business travel”, a lot of us public service employees were required to travel, often having to raise the funds from outside sources, by the “lowest cost fare available” which meant you had to plan in advance, you couldn’t reschedule, and you had to spend Saturday away from home.

    Since that time, you still have the non-refundable ticket, the weekend stay and 30-day advanced purchase has been relaxed, but it is kind of like Internet Casino finding low-cost fares at the times you want to go. Also, the lowest fares often involve multiple “hubs”, a throwback to the mail flights in the video.

    Also, public service employees now work for a public that has a lot of buying power over the airlines (kind of like the deal with Medicare reimbursements, which probably drives the retail price sky high of doctor’s visits and procedures from those paying out of pocket). As a public service worker for a state, I went on a trip funded by an agency of the feral gummint, and I was amazed at the ability to change the ticket to accommodate changed plans.

  4. Airlines have had first class sections at least as far back as the 1950s. Some of the propellor planes had the first-class section in the rear because it was quieter.

  5. I find myself largely in agreement with the video. I also agree that for long haul flights you will likely see 1st class gone entirely to be replaced with business class and everyone else. It just economics.

    Also fascinating was this link from the same author on why planes don’t fly faster:

    https://www.youtube.com/watch?v=n1QEj09Pe6k

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