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casailor53 said:
Let me preface this by saying that I know nothing about the airline business.

But a memory just came up. I believe that I have read that non-business flying, eg, YOU, going on vacation, is essentially subsidized by the much-higher-cost of business travel. So, tickets to (essentially) vacation-only destinations would have to cost more in order to break even or make a profit?


That is less true everyday. Most business leaders are done with paying a premium anywhere. Whether business or pleasure you will pay a premium when demand is high and supply does not meet demand. The best "deals" if they are any are when a plane must be re-positioned to take or meet a higher demand later that day or the next. Airlines are using tools and algorithms to eliminate those "deals" or any flight that travels at a loss.

Consider this the better corporate travel offices demand the airlines sell them tickets at the 21 day advance purchase price or bar their employees from traveling on those flights. Gone are the days where a business traveler from a sophisticated employer is sitting next to someone who paid far less. The airlines are now retaliating with privileges, status, upgrades, and miles based on how much you pay. So just like everything else the market will become efficient and we will all pay business and pleasure for what we get. What the airlines want to do in return is reduce even eliminate the short flights and smaller airplanes. Each landing and takeoff costs large dollars these days.

The other variable that will never be fully disclosed is the subsidies the US Government, cities, and other markets pay to get consistent daily service for an area.

When the dust and noise all settle the most likely outcome will be subsidized ferry and air services to meet the needs for the BVI to compete/succeed in the hospitality and business markets.

Here is a little cut and paste from the Harvard Business Review:

"In 2015, half of American Airlines' revenue came from 13% of its passengers. A very substantial portion of flyers are business flyers, for whom the company or customer has airfare rules. Air travel has become a commodity, and it is difficult to move upmarket when an increase in airfares (and service) would move you out of your customers' authorized purchase range."

Just like the food service, hotel room and other traveler markets the key it to avoid the most competitive commodity markets where you can. That is exactly the direction the BVI hopes to take allowing the DR, Mexico, Jamaica and others to have the most budget conscious package travelers. 2,000 mile legs even at 20 cents per passenger mile would be $400 per leg.

Last edited by StormJib; 06/02/2016 11:57 AM.