It's a fairly simple formula really. Charge almost nothing for tickets but charge $3 for a drink, a magazine, checked bags, tv, cell phone service, pillows, blankets, whatever. Introduce gambling in flight and take a cut of the wagers and you're making a mint. They've just managed to shift costs from fares to everything else on the airplane. See the links below for details.
http://money.cnn.com/magazines/business2/business2_archive/2006/04/01/8372814/
http://www.thisfrenchlife.com/thisfrenchlife/2004/09/free_ticket_off.html
http://www.guardian.co.uk/airlines/story/0,,1607342,00.html
Oh and here's my favorite quote from the CEO of RyanAir:
"Entertainment is where the real money will be made in future." If anyone got round to paying passengers to travel "we will pay them more".
Yes, airlines could conceivably PAY passengers to travel on their airline. Much like a casino that gives away rooms to entice people to stay at their hotel and gamble. Interesting financial model isn't it?
http://money.cnn.com/magazines/business2/business2_archive/2006/04/01/8372814/
http://www.thisfrenchlife.com/thisfrenchlife/2004/09/free_ticket_off.html
http://www.guardian.co.uk/airlines/story/0,,1607342,00.html
Oh and here's my favorite quote from the CEO of RyanAir:
"Entertainment is where the real money will be made in future." If anyone got round to paying passengers to travel "we will pay them more".
Yes, airlines could conceivably PAY passengers to travel on their airline. Much like a casino that gives away rooms to entice people to stay at their hotel and gamble. Interesting financial model isn't it?
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