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| Topic: |
Business
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| Number of pages / Number of words: |
3 / 805 |
Essay's paper body
The fixed cost of an airline route is basically the seat pricing. The practice of charging different prices to different passengers on the same flight reflects the cost structure of airline operations, which is the high fixed cost. The variable costs are basically the labor costs, lowering operating costs, providing in flight food and entertainment...
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The variable costs are basically the labor costs, lowering operating costs, providing in flight food and entertainment. Song didn’t have any control over their fixed costs; the market today is defined today by people who want the lowest possible price. Song had to take away there thousand dollar fares that they charged for the businessman, because Song would rather fill up the seats at low prices than let seats fly empty...
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