Are airplanes in it for the profit?
Discussion
bigbubba said:
walm said:
Not really, leasing or buying is just a question of how you arrange your balance sheet (like with a car purchase).
The purchase cost is still irrelevant...Unlike a car purchase, the residual values are huge with aeroplanes.
Ari said:
It's not a silly question at all.
I flew to the south of France recently with BA for about £80 return, just £40 each way!!
I must admit, I found myself wondering how they can buy an aircraft (or lease it, in which case someone else has paid for it and wants to make a profit on the lease), staff it, fuel it, maintain it, pay airport fees, pay IT, pay backroom staff, pay insurances, taxes, and all the other things an airline must do, and flog tickets for £40 each way.
Just like the OP, I do wonder how they do it for the money.
They don't - your ticket is subsidised by plenty of other tickets on the flight, which will usually be in the thousands. I flew to the south of France recently with BA for about £80 return, just £40 each way!!
I must admit, I found myself wondering how they can buy an aircraft (or lease it, in which case someone else has paid for it and wants to make a profit on the lease), staff it, fuel it, maintain it, pay airport fees, pay IT, pay backroom staff, pay insurances, taxes, and all the other things an airline must do, and flog tickets for £40 each way.
Just like the OP, I do wonder how they do it for the money.
Well how's this for cost cutting? I have just received my Air Asia latest deals email. At the bottom it expresses 'even better, great news' to help our customers 'keep the cost of flying down'. Apparently from next month, their customer service telephone line(that was never answered anyway) will be shut down and all enquiries will have to be via email.Brilliant! Basically, if you have a question or a problem, you are better off standing in front of a mirror, asking yourself a question and then telling YOURSELF to 'f
k off, NO!'
k off, NO!'pthelazyjourno said:
They don't - your ticket is subsidised by plenty of other tickets on the flight, which will usually be in the thousands.
Indeed... Better to get 40 quid to fill a seat than leave it empty - most of the operational costs will still be there whether there's a bum on the seat or not!PHmember said:
jamie128 said:
stuttgartmetal said:
No.
They do it for the sts and giggles.
Dont be so sarcastic, i dont think buses/trains make much money its just a serviceThey do it for the s
ts and giggles.Ahuh, yes, and I'll have fries with that.
No, not pies, fries.
F.R.I.E.S.
pthelazyjourno said:
Ari said:
It's not a silly question at all.
I flew to the south of France recently with BA for about £80 return, just £40 each way!!
I must admit, I found myself wondering how they can buy an aircraft (or lease it, in which case someone else has paid for it and wants to make a profit on the lease), staff it, fuel it, maintain it, pay airport fees, pay IT, pay backroom staff, pay insurances, taxes, and all the other things an airline must do, and flog tickets for £40 each way.
Just like the OP, I do wonder how they do it for the money.
They don't - your ticket is subsidised by plenty of other tickets on the flight, which will usually be in the thousands. I flew to the south of France recently with BA for about £80 return, just £40 each way!!
I must admit, I found myself wondering how they can buy an aircraft (or lease it, in which case someone else has paid for it and wants to make a profit on the lease), staff it, fuel it, maintain it, pay airport fees, pay IT, pay backroom staff, pay insurances, taxes, and all the other things an airline must do, and flog tickets for £40 each way.
Just like the OP, I do wonder how they do it for the money.
Put simply an aeroplane isn't earning any money when its on the ground. One of the domestic US carriers have ~700 aircraft, the aim is to have them in service (i.e. flying or in "turnaround") for 18 hours a day.
The biggest risk they have is delays/cancellations, pees off passengers but costs them a packet.
The biggest risk they have is delays/cancellations, pees off passengers but costs them a packet.
johnfm said:
Heh at all you guys take the p1ss out of Jamie - when lots of evidence of bankrupt airlines suggest that many of them don't make profit.
I was pondering this as well. Its not only the airlines that have gone bankrupt but those that have been bought out and if they hadnt they would have gone bust.As regards 2nd hand planes being worth more than new ones is that one of the ways RYanairs business plan worked? Basicallythey bought huge numbers of new jets at such a discount that when they sold them they received more than they had paid.
As regards buses whilst bus companies might make a profit but how much is that from taxpayer subsidisation of bus routes?
doogz said:
They're not really concerned with "MPG" i believe they usually work in tonnes/hour.
But yes, operators make money. If they didn't, they wouldn't be in business.
I'm Contracting at RR at present and they talk alot about SFC But yes, operators make money. If they didn't, they wouldn't be in business.
http://en.wikipedia.org/wiki/Thrust_specific_fuel_...
And to the OP, yes it's all about money. How else would RR make £1Billion Profit in the last year, if they didn't sell engines to Boeing and Airbus and the Airlines didn't buy the planes, and you and I didn't fly off on holiday or business, along with millions of other people EVERY day, all over the world.
Just think, every time you go on a plane, you are paying for the 10,000 people in Derby to pay their mortgage, along with the 50,000 people in related industries in the UK, plus the employees of BP and Shell, in oil refineries. Basically, If the OP wants to solve the UK's problems he needs to travel more.
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