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by fanzhang
2964 days ago
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Is it possible that in a regulated airline market $20k roundtrip went not into the marginal physical costs but regulatory overhead/profits/recovering fixed costs? If I showed you that a can of Coke in a Disney world vending machine was $3, and told you I could get a can at $0.30, would I have performed a miracle in the soda sciences? $8K is a normal RT JFK-LHR ticket today in business class. This is vs $800 in economy. However, Boom proposes that the same $8K can support economy-style seating traveling at Mach 2.2 instead of mach .80. It does not seem unreasonable to me that 3x the speed will cost ~10x as much. |
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