PPRuNe Forums - View Single Post - German Airline Blue Wings halts flight operations
Old 13th Jan 2010, 14:30
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Dodo56
 
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Sadly increasing fares will only serve to reduce load factor, especially if there is a low cost cattle carrier competing the same routes. Low load factors means unprofitable routes which get discontinued, aircraft parked, central costs become a higher proportion of the airline's total, fares have to be increased elsewhere to cover these, and repeat.

To be fair the routes would probably have been viable if not for the recession depressing pax numbers and the unwillingness of the banks to offer finance to tide airlines through hard times.
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