Originally Posted by
rickair7777
At one point I worked in a highly technically specialized manufacturing industry...we built large, complex systems customized to the customer's needs and we marked it up about 50%. But we had few competitors, and fewer still who had our reputation.
Airline seats are a commodity. Commodities usually get marked up 2-3% (or even less), so EVERY cost associated with providing the commodity becomes significant in the long haul.
Airline seats are an unusual commodity. They have zero shelf life!
As for how much we cost, we cost the airlines between 15-20% less per ASM when compared with the European airlines.
AL