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Old 22nd Aug 2022, 21:17
  #511 (permalink)  
The breeze
 
Join Date: Jul 2017
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Originally Posted by Downwind_Left
But that’s often the argument about seat-mile costs. The larger aircraft usually has the cheaper cost, but that is only true if you assume a 100% load factor.

Extreme example;
The A380 versus the E145. Seat mile costs incomparable. But if you only have 50 passengers. Which is most cost effective to fly those 50 passengers, despite the E145’s very high seat cost compared to the A380?

Relevant example;
The DHC8-Q400 has 50% more seats than the E145. If both airlines only fill 50 seats on a competing service. And Loganair possibly command a higher price point due to more frequency, connecting pax in Scotland, BA codeshare etc. Which aircraft is more profitable? The larger, cheaper seat-mile cost aircraft, at a 75% load factor, or the smaller, “more-expensive” aircraft at a 100% load factor, and possibility a higher average fare. Impossible to answer without information that will never be known outside each airlines commercial department.

lower operating costs, tonnage charges and and half the cabin crew salaries.
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