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clarkenheim | 7 years ago

According to this: https://www.youtube.com/watch?v=BzB5xtGGsTc First/business class seats are where the airlines make all of their money, so Concord would be economically viable today.

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darkmighty|7 years ago

While I'm sure most profits/margin come from first/business class, I think that's only viable because the large number of economic class passengers help marginalize the cost per passenger. To give a concrete example, suppose the airline is flying 20 business seats per flight. The cost of those seats to the airline if it had no economy class, and it were forced to allocate an entire plane for them would be immense -- marginal the cost per seat would be (illustration) ~Airplane_Cost/20+Accomodation_Cost. Now suppose a current airline will carry perhaps 200 economy class passengers where it makes 0 profit. The marginal cost of the business class seats to the airline now will be much lower, something like ~Airplane Cost/(200+20)+Accomodation_Cost.

So the airline don't need economy class to make profit, they need them to create economies of scale that bring down their cost for the high margin customers.

ggg9990|7 years ago

I have been on a 747 that was business class only (Singapore Airlines). But the economy class passengers are definitely required for scale on most flights.

londons_explore|7 years ago

If true, concord alone would be viable, but a combination of concord and regular planes on the same route would lead to all the business passengers taking concord, and the economy ones left in standard planes, which would no longer be viable.

TeMPOraL|7 years ago

In that case you could raise the price of Concorde tickets to push surplus business customers back to regular planes. But this raises the question, why would you even want to bother with Concorde in the first place?

It only makes sense if you could attract new business class customers, who would take the faster trip but wouldn't take the slower one at all.

jonknee|7 years ago

That was also the case back when Concord was in service...

adolph|7 years ago

Wouldn’t a more costly to produce product eliminate the large margin of existing first/business class?

Fomite|7 years ago

And yet a number of "First/Business Class Only" airlines have failed.

zone411|7 years ago

But most of them failed because a jump in oil prices in 2006-2014. We're below these levels now.

samstave|7 years ago

Yeah but they lack hammocks!

komali2|7 years ago

There are planes with hammocks? Sign me up