Supply And Demand

[Art at ISP]

Shuttle fares are historically high as it is, with even a rational fare very profitable..Average cost at 10 cents a seat mile is under $25.00. Since most shuttle passengers are O&D, I believe it safe to use the simple formula many of you object to.

That said, it is not a reason to gouge the market either...Full fare is about $484 r/t, which is much higher than it needs to be...a r/t of $250 to $300 is VERY profitable.

 

[hharotz]

Any chance of substituting the 319s with 320s untill Acela comes back online? Now that the Airbuses on the Shuttle are mainline aircraft can we not just temporarily do a swap at least during the peak periods?

Oh, I forgot, that would make too much sense. :down:

 

[ISP]

Shuttle fares are historically high as it is, with even a rational fare very profitable..Average cost at 10 cents a seat mile is under $25.00. Since most shuttle passengers are O&D, I believe it safe to use the simple formula many of you object to.

That said, it is not a reason to gouge the market either...Full fare is about $484 r/t, which is much higher than it needs to be...a r/t of $250 to $300 is VERY profitable.

[post="264877"][/post]​

But Art, I find that on my east coast travels (non-transcon), I am often connecting through DCA since PIT has been downsized. For example, I've done LGA-DCA-MCO several times recently. How much is the company making on that, when that entire R/T is $130? It would be good to see the O&D stats for each flight. I'd say the Shuttle is profitable if >50% of the travelers are O&D, which in likelihood they are, but I just wanted to point out the unprofitable connection aspect.

 

[whlinder]

Hell, if you are connecting on a $130 RT, it is probably unprofitable no matter where you connect. And if US manages to lose your luggage, the ticket falls below your marginal cost.