Hi all,
My hub is in Athens (ATH). I noticed that since a couple of days ago the cost of branch office for flights returning to Athens has sky rocketed suddently!
For a very short flight from Athens (ATH) to Astypalaia (JTY) it went from 204 AS$ to 750 AS$!!!!
Why is that? What is it that makes the office costs fluctuate??
What, you mean revenue? If the costs rise then that's usually due to extra staffing needed, however I don't understand what you mean by ticket prices?
Hi CsCostas,
The branch office costs in the breakdown are based on the total cost of the branch (so staff etc.) divided by the number of flights* per week. Therefore if you decrease your flights to an airport then the price will jump.
*I believe it is flights but may be divided by passengers?
Thanks
Ian
What, you mean revenue? If the costs rise then that's usually due to extra staffing needed, however I don't understand what you mean by ticket prices?
No, what i mean is if you go to the breakdown cost analysis of each flight in the Indirect Costs section there is the cost for the Branch Office you;re flying to.
For the same flight a couple of days ago this was 204$ and now this has suddently risen to 750$.
I was wondering why.
Hi CsCostas,
The branch office costs in the breakdown are based on the total cost of the branch (so staff etc.) divided by the number of flights* per week. Therefore if you decrease your flights to an airport then the price will jump.
*I believe it is flights but may be divided by passengers?
Thanks
Ian
Hi Ian,
I'm talking about Athens. In this airport I have actually increased the flights!! It does not make sense!