This is called in the economic world as elasticity.
All airlines serving the island will pitch their fares into the correct margin for the maximum income and therefore profit.
Travel on the island is essential, meaning air travel has an inelasticity, as prices can rise, but demand will not fall. I therefore cannot see how the airports figures will keep declining? Increase of flights from Manx2 and Euromanx in the coming months, the airports fortunes may start to change.
Just look at FR, they pile there seats high and sell them low. Would you pay 100 pounds to somewhere like Sczezin or Alghero, no, but you would pay 20 pounds. Mr OL has really executed the elasticity on EU travel.
Last edited by jet2_at_blk; 11th Mar 2007 at 19:25.