MikeC
Closed Account
The "one time increase" results in a cost increase for as long as it is maintained - it is NOT a one-time cost.
Low cost carriers proliferate because they pare down costs for absolutely everything - even a 5 minute shorter turn-around on the ground can result in an extra flight on a given day, resulting in higher utilisation of the aircraft and lower seat-mile costs and hence lower fares. Adding a row or 2 of passengers at the expense of class dividers or a "full service galley" can likewise make a massive difference to seat mile costs.
I have seen how airline economics work - if you think a 1% increase in the price of fuel will not matter then I can only assume that you have no such experience.
Air mashals and reinforced doors are minor costs compared to fuel.
Airlines compete agaisnt othe forms of transport - in the US teh train system may be a train wreck (sic), but elsewhere in the world there is a lot of competition between high speed trains and air travel, and increasing the fuel cost for one mode but not the other WILL cause reduction in services.
Low cost carriers proliferate because they pare down costs for absolutely everything - even a 5 minute shorter turn-around on the ground can result in an extra flight on a given day, resulting in higher utilisation of the aircraft and lower seat-mile costs and hence lower fares. Adding a row or 2 of passengers at the expense of class dividers or a "full service galley" can likewise make a massive difference to seat mile costs.
I have seen how airline economics work - if you think a 1% increase in the price of fuel will not matter then I can only assume that you have no such experience.
Air mashals and reinforced doors are minor costs compared to fuel.
Airlines compete agaisnt othe forms of transport - in the US teh train system may be a train wreck (sic), but elsewhere in the world there is a lot of competition between high speed trains and air travel, and increasing the fuel cost for one mode but not the other WILL cause reduction in services.