PPRuNe Forums - View Single Post - Oban Airport to become Highlands and Islands hub?
Old 1st Sep 2001, 14:51
  #31 (permalink)  
The Guvnor
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Cool

Hmmm, Huggy - but here's a thought. Rather work on the 'Ryanair' principle - that if you charge low fares, lots of people will fly.

An F50, for example, will cost around US$2,000 per hour all-in and you've got 50 pax. That's US$40 per hour at 100% loadfactor or say $70 per hour at a 60% loadfactor (allowing for rounding up).

Using your 30 minutes block time (rather more realistic in an F50!) the cost per pax is US$35 each way based on a b/e of 30 seats - that's just over £24 based on current exchange rates.

Using normal yield management formulas, you can charge probably £75 each way for a fully flexible 'business' fare going down to say £30 round trip for weekend specials - and you know that loads would be good both with visitors headed north and residents headed south for shopping, University etc in Glasgow.

It definitely works!