Scotbill
"However, you are deliberately ignoring the point. The Saab 340 has 34 seats. If it departs with 17 empty (as it often does) that is a completely wasted resource. The reason the locos make a profit is that they cling to the old airline accountant's mantra that the only thing that counts is "Bums on seats"
I'm not sure that it isn't you who is ignoring the facts here.
The loco business model works thus:
Buy a seat well in advance = cheap, or at least until the cheap seats have sold.
Buy a seat on the day = eye watering expense.
The full fare model works thus:
Buy a seat well in advance = cheap enough, until cheap seats sold.
Buy a seat on the day = eye watering expense.
The only difference here is that the loco's only operate on routes thick enough to provide a good load, hence generally fares appear cheaper due to greater numbers of bums on seats, business "efficiencies" and on board sales.
Both models rely on yield management, that allows them to tweak their prices higher as tickets sell out and the travel date approaches.
If Loganair were to sell seats cheaply on the day, no-one would buy in advance. The cash would run out and they'd go bust in a nutshell.
Clearer now?