Eli5 why airlines tickets from country to country are 20 euro when taxi from town to town is 20

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Eli5 why airlines tickets from country to country are 20 euro when taxi from town to town is 20

In: Economics

7 Answers

Anonymous 0 Comments

The aviation industry is so huge that it can rely on the economics of scale to bring down labour costs very low. An aircraft can fit on a lot of paying customers and airlines also get large government subsidies (mostly in the form of tax exemptions) which are supposed to encourage more tourists to fly to the country in question and spend money there.

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