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Old 29th Jan 2014, 09:34
  #1967 (permalink)  
AEROMEDIC
 
Join Date: Mar 2006
Location: Melbourne
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SOPS,

It's called a "loss leader".

You have a dozen or so of seats at $0, and the rest at various tiered prices to make a profit in totality. The "add ons" ( baggage, cabin services,etc.) improve the profit.
You can effectively advertise these sets as if there are plenty.

As to the $2.2 million profit, Dennis Choo gets to take half for his share in the company.
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