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Old 21st May 2010, 21:57
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NaijaNinja
 
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Peppersoup

Maybe peppersoup should come out and tell us more about the rumours he mentioned.

If selling tickets at low prices is an indication of doom, then Ryanair & Southwest should have been buried eons ago. Aero's low fare campaign is a classic demonstration of what most people don't know. There's a concept in airline economics known as yield management, if you can maximise it, then you won't be left with plenty of the most perishable item in a consumer domain.

For those who don't know, an airline seat is one of the most perishable item around, once you close the doors, those unoccupied seats will never make a dime, so why not put some of those seats out at very low prices so that you can make some little change to pay the little bills?

I gather other airlines are catching the bug which seems to be a plus for consumers, but does this mean all the carriers are doomed? I would like to be enlightened further by those who know what i don't know.
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