Doesn’t need a plane a lot more human and nonhuman resources to transport a person than a train or bus?
In: Economics
The question implies that air travel is indeed cheaper than any other public transportation.
But this is not accurate.
Flight tickets are prone to competition and volitality in demand. Two things that usually do not relate to other forms of public transportation.
Another thing that you should keep in mind is that not all tickets on a plane are sold for the same price (even in the same class). The cheaper tickets (or fare classes) are usually sold months before the flight, and last moment tickets are sold at higher prices due to demand (people have to get on the flight).
Another thing to consider is that the marginal cost of adding the last passenger to a flight is extremely low and consists of the amount of excess fuel that this passenger causes the plane to spend (which is a funny number).
All in all flight tickets are not necessarily cheaper, but they are a part of a much more complex pricing system.
Latest Answers