PPRuNe Forums - View Single Post - Jetstar to sell five cent airfares
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Old 28th Nov 2007, 01:48
  #36 (permalink)  
Skystar320
 
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You don't need a degree to understand that it will cost a lot more than 5 cents to fly on these sectors.
Whatever the seat/km cost is it is a heck of a lot more than 5 cents.
Add to that the cost of the various taxes which we all normally pay and someone is subsidising the cheap fares and to a considerable amount.
Jetstar's ASK per seat is around 7.9cents per available seat km. Therefore read above post to get a real understanding.

"Wouldnt have thought it was heck of alot more"

Obvious you need to understand the financial operations on how it really works....
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