Airline Economics
Airline Economics: What it costs to airlines to travel passengers and how are airlines impacted differently due to travel disruptions. Last year, I was traveling from Bangalore to Mumbai and I booked a pretty cheap ticket of Rs 2500 with some card discounts. I was just doing the math in my mind, "Bangalore Mumbai distance is 1000km so I am paying 2.5Rs per kilometer which is great considering the luxury you get to travel plus the time it takes for the same alternate transports ( 1.5 Rs/km for bus travel ) and (1Rs /km) for Railway." Assuming I booked early and airlines follow the dynamic pricing rule (Prices follow an increasing trend as the date of travel) and many other factors which can be part of a broader discussion, I was wondering what it actually costs an airline to transport 1 ASK (Available seat kilometer). Ok simplifying the airline jargons a bit here ASK - Available seat kilometers (Let's say this Bangalore-Mumbai flight is airbus 320 which has 180 seats so ...