Eli5 why airlines tickets from country to country are 20 euro when taxi from town to town is 20
In: Economics
1. 20 euro is just the base price, you usually pay extra for luggage, food, chosen seating.
2. An airplane can hold tens or hundreds of people. A taxi can hold 4.
3. Supply and demand. Airlines need to move airplanes around (if they fly a plane from A to B, they’ll need to return the plane from B back to A). If no one wants to fly from B to A, they sell the ticket very cheaply – it’s better to have a plane full of people who bought a cheap ticket than an empty plane.
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