Hi,
I've cancelled a lot of unprofitable flights with less than 10% load factor to schedule in new ones, however, my Miscellaneous expense in the balance sheet (which I suspect accounts for this cost) has gone up to $90k after I cancelled around 25 flights. What is the model followed to compensate passengers if their flight is cancelled?
I would like to understand if cancelling a scheduled flight is worth it. An empty flight loses me $3k however a full one earns me $1k so this is necessary and I would also like to understand why I have 129 admin & 343 network planning staff, with a total of 960 personnel.
(In case the tone might seems aggressive to you, it's not, I was in a hurry when I wrote this)
Thank you in advance!
For every pax canceled, you pay him compensation equal to the price of ticket he would pay had the flight departed. Same for cargo.
You can cancel flight if the subtotal in the flight costing showing the item after paying fuel is not positive. Basically compare what it would take to fly the flight (excluding leasing and all wages) and what you would earn. Compare and decide.
thanks rubio, so as long as the flight related costs is negative then cancelling will lose me less money, for return flight as well, of course.
Many of those passengers might be feeding passengers which have otherwise made you money on other flights, you just have to look before cancelling it completely.
Many of thoose passagers might be feeding passagers which have otherwise made you money on other flights, you just have to look before cancelling it completely.
I don't think AS takes that into account. Once they are booked and recorded their full itinerary is not saved.
I don't think AS takes that into account. Once they are booked and recorded their full itinerary is not saved.
That is true but removing the route completely will change loads on other flights as well.
That is true but removing the route completely will change loads on other flights as well.
Removing the route yes, will (may) affect loads of other flights (and then, maybe not, as the newly freed up seats may be booked by other flights).
What OP needs to understand (and which was a bit confusing) is that cancelling flight A does not remove passengers from flight A being booked on flight B (if any).