Flying Leaps
In this article they are talking about an airline, Skybus, that is turning air travel upside down. Its unique economical approach to travel is allowing the company to cut prices as low as $10 a ticket for ten seats. The highes prices are always going to be 50% lower then other airplanes. This sounds absolutely great, but is it a good move for society? By cutting prices it seems that Skybus is trying to quickly eliminate its competition. By doing this, it will have a monopolistic hold on the flight industry. So I guess my question is, will this company be successful, and if so, will it last considering anti-trust laws?
2 comments:
My question is how long will Skybus be around. It is going to be hard for Skybus to turn a profit if tickets range from $10-$100. It is an interesting idea making it affordable to fly for $10. I have looked into them a little bit. For any additional service they charge a fee. If you check a bag it is going to cost you. That cost goes up as the amount of bags goes up. Also if you want a pillow they charge you for that. If you are just going on a short trip somewhere and don't have a lot of luggage then you will be able to take advantage of their low cost structure. I don't think the government will have to worry about any anti-trust laws for them. I doubt this company will be around long enough.
I wonder where Skybus is going to make a profit. This low price will no doubt cause a shortage in the number of Skybus seats available but will this high demand cover their cost of operating a major airline business?
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