Branch Office Costs

English Boards General
1

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??

2

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?

3

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

4

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.

5

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!