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by wpietri
639 days ago
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I don't think that's a great counterpoint for a few reasons. One is that leg room isn't particularly transparent. If I search for flights, the price is much more visible than a leg room measure. Two, people can certainly be fooled; for a long time airlines have been playing a game of gradually ratcheting back amenities without being up front about it. This is the same game that consumer packaged goods companies play with apparent package size. Three, people pay for more leg room all the time. Last I booked a flight, about half the plane was first class, business class, economy plus, or exit rows. Personally, I sometimes pay for it and sometimes don't. When I don't, it's sometimes because I resent how grossly extractive airlines have gotten. I also think "empirically want", however cute it is as a linguistic trick, is not particularly accurate. Is it what gets him paid? I'd believe it. Is it what they watch? Sometimes, for some people! But pretending that short-term behavior is equivalent to what somebody really wants is choosing to ignore a great deal. It's like saying alcoholics "want" to drink themselves to death. |
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However most concretely, back in 2000, American removed a few rows of coach across its entire narrow body fleet to give passengers an extra 3-5 inches of legroom throughout coach. They did not recover the costs and walked it back. jetBlue provides more legroom through all of coach, and even I as a very tall person, don't go out of my way to book them.
Some people will pay more for extra legroom, and I think the current split of seating in planes is likely right around the optimal distribution based on who will and won't pay.
> Two, people can certainly be fooled; for a long time airlines have been playing a game of gradually ratcheting back amenities without being up front about it.
Kind of but not really. Yeah they're not going to put out a press release when they take the olives off your salad. Airlines are an incredibly low margin commodity business. Many years they're negative margins. American's current operating margin is 3.41% [1] This is typical. These aren't B2B SaaS margins we're talking about.
So generally when they take the olives off your salad, instead of putting out a press release they just lower fares on competitive routes. Because most people book on fare or based on corporate contract, which is a second-order effect of fare.
[1] https://www.macrotrends.net/stocks/charts/AAL/american-airli...