KRUSTY 34 said:
... we can tell these communities that the loss of these essential services had come at a high price......$6.25 a ticket!
If you had the intelligence, you would realise that, if it did truly only cost $6.25 per ticket, then this increase would have been made long ago and everybody would be living happily ever after.
I will just labour that point a little more, for the benefit of the numerous PPRUNE readers that seem to lack the comprehension ability to understand my simple posts.
If all it took was the little increase of $6.25 per ticket, REX would have made that increase.
So, obviously, 40% salary increases must cost more than $6.25 per ticket.
The calculation that yields these little numbers (e.g $6.25) is so incredibly simplistic that only a fool would use it. The calculation manages to exclude almost all the factors that would affect ticket pricing.
It assumes 100% load factors
before and after the ticket price increase - can't have load factors in there now, complicating things, can we?
It ignores GST and other taxes and charges that are a percentage of the total airfare.
My personal feeling on the question of how much of a ticket price increase would be required to facilitate a 40% salary increase is that such a result is utterly impossible. Probably anything over a 3-4% increase is impossible.
This is because, as you increase prices, load factors drop. Increase them even more to compensate for the reduced load factors and the load factors drop even more. This should all be bleedingly obvious.