I know about high fixed & variable costs, but leasing and buying an airplane isn’t cheap either, and entrepreneurs with that much capital and surely great IQ couldn’t turn an airline profitable. How is this possible? there has to be something “internal” or something I’m missing?
In: 0
Airports have a limited capacity and regulations restrict how noisy a plane can be and when they can fly all this limits the number of takeoff and landing slots available and most of the good ones are already taken by the major airlines, add to that the airplane are expensive piece of kit and need to be maintained and fuelled which adds to the costs, then the price of fuel can suddenly double in price and make all the profit and loss operating figures suddenly worthless.
Latest Answers