What cost per PAX should I be aiming for when doing short haul routes? Do I just go all in on everything or do I have to balance cost to service in a specific way? Please help!
As in the real world, you have to provide just enough service that passengers choose to fly with your airline and not with a different one. If the service level is too high, it will be expensive to operate the flight and you will not make a profit.
If your planes are old/unpopular with passengers, you may need to provide a higher level of service than you would with with a newer plane to keep the overall flight rating high.
If you’re the only airline operating on a route you may be able to get away with a lower service profile than on more competitive routes and keep the savings as extra profit.
Some trial and error will be required to find the right balance. Good luck!