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Subject: Re: Legality of not using return portion of airline tickets? Posted on: Sat, 14 Oct 2006 16:55:25 -0400

"Frank F. Matthews" wrote:
> It would appear to do that. If it forces some passengers who will fly
> anyway into higher prices fares it would appear to be an effective yield
> management tool.


In a cartel, yes. When you know all your competitors do the same yes.
But introduce just one airline that doesn't have that silly artificial
rule and your yield management fails because you end up giving business
to the low cost carrier who don't have those artificial price barriers.

Legacy carriers can no loger milk customers dry just because they are on
business. They need to offer competitive fares. And they can do that
whislt keeping teh avreage yield the same. Charge less to business
travellers and charge more to casual travellers.

Operating a flight based on having 5 high paying customers and the rest
just barely paying for the fuel is not a winning strategy anymore.
Legacy carriers must think of every passengers as a profitable one and
charge them so that they are profitable.

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