The Economics of Airline Class

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Information The Economics of Airline Class

Title	:	The Economics of Airline Class
Lasting	:	11.38
Date of publication	:
Views	:	11 jt

Sorry for doubling up on aviation videos! Normally I wouldn’t do two videos of similar topics back-to-back but the video I was going to do just ended up not being interesting enough so I scrapped the script I didn’t have time at that point to do a research-intensive video so I decided to do this topic that I already knew a good bit about brbrAlso I know this is a pretty loose interpretation of economics, but hey, I liked the titlebrbrAlso, one clarification on something I realized might be confusing during editing: airlines absolutely had first class in the 60s and 70s It just wasn’t anything like the long-haul first class’ you see today It was pretty much like domestic US first class today The impact of the Concorde was the perceived competition it created for the highest-class of traveller Some airlines decided to close their first class cabins and not compete while others improved their cabins in order to compete Lie-flat seats or even angle-flat seats really didn’t become ubiquitous until the last 10-15 years with the demise of the ConcordebrbrAlso, first
Comment from : Wendover Productions

'Economy is not making money' is not an accurate statement
Comment from : L B

Uffda These square feet Please use best measurement
Comment from : Pigdog

First class is Worth the price for any flight longer than an hour
Comment from : Jose Olvera

Crazy how someone has the money to pay 5000$ a sit
Comment from : golden

Uhhh first class is here to stay
Comment from : WildFlower

Cattle class, and it’s only gotten worse in six years
Comment from : Florida Man

I’ll happily keep letting first class passengers subsidize my ticket in exchange for giving up some legroom, a bland meal, and a status symbol
Comment from : Adam Steinhardt

flying is torture thats why we pay anything to make it better
Comment from : Fatz Treeboy

Washingtons dullest airport
Comment from : HardTardBard

Inm
Comment from : Levi Ringer

8k for one plane ticket seems Demented
Comment from : Hdhdh hehe

10:12 SIN-JFK? I’m pretty sure the flight between Singapore and New York is premium only
Comment from : Toby

This explains why they treat us economy folks like cattle 😂
Comment from : Hisham H

Airlines ARE swimming in money
Comment from : Steven

L❤l😊
Comment from : Jacob Hodgkins

The deregulation of airlines was the worst decision ever made They are ripping off the public and have no need to meet expectations On price or on quality the airline industry is awful And the elites running them, are globalist slobs
Comment from : Joe Fatalooch

In the future 3rd class passengers will have to stand because there won't be any seats but the first class will have couches, a pool and a rock climbing wall
Comment from : Richard Willette

The Concorde gave them reason to 😂😂😂😂😂
Comment from : george ssemmanda

Thats why budget airline exist
Comment from : CanineAtNight

The problem with flying business or 1st is that it’s very hard to go back to economy on long haul flights! brLuckily though, as the video mentioned, there are tricks to getting premium seats cheaper brI fly out to Austin, Texas from the UK at least once a year and to get a return business class ticket from either Manchester or Heathrow, the prices start at around £3600, but if I fly out of Dublin, they start at around £1300 and all it costs me is a £50 flight from Manchester to DublinbrbrI agree about the 1st class premium not being worth it though, I’ve flown BA First and although an enjoyable experience, unless you’re using air miles, the price difference between First and Business is very hard to justify
Comment from : SupraMarc

Just call Economy class what it really is Peasant Class
Comment from : Reaper 3000

Capitalism/consumerism is evil
Comment from : BASED LOCATION ☭

LOL that last line economy people are just there to fill the plane
Comment from : Wade Williams

My experience does not match your description of the evolution of FC It existed in the Connie and the Vickers Viscount (both prop planes) In the Connie the FC passengers sat in the back Even in the mentioned Boeing 707 there was a FC section with a lounge
Comment from : Hassan Alam

First time i flew transatlantic with Lufthansa, they upgraded me to business class It felt like first class Never forget
Comment from : Carlos Gamboa

Im just there to fill the plane
Comment from : Carlos Gamboa

all levels, of society, on display for all to seeeh
Comment from : Philip Buckley

The concorde did not fail - 27 yearsbrThe Concorde, one of only two supersonic commercial jets in service to date, was retired in late 2003 – after flying for 27 yearsbrbrthats not a failure
Comment from : Rusty Trombone

only when first class ticker are sold at face value
Comment from : Dave Hobby

I can’t imagine having enough money to pay for the premium economy seats but let me tell you when I’m granted one flying Non-rev it is a beautiful thing!
Comment from : Michael Scofield

11 million views!!!!
Comment from : Frncsc

I find it hard to believe business class is made of entirely/mostly of business travelers employed by companies that don’t care about the cost of a ticket Maybe that’s some of the customers Maybe that’s how it was in the old days But now it seems business class is just a section that exists to comp frequent flyers
Comment from : Joel Wright

Most people flying business and first have been upgraded How did you miss that
Comment from : Off-Roading Arizona

"Everyone in economy is just there to fill the plane "
Comment from : Hassan Adan

I feel a victim of airline scam flying international on business class…
Comment from : Daffa Ellong

What happened between 1969 and 1978? brbrbrbrbrbrbrbrbrbrbrbrbrbr-9 years
Comment from : Seòras

I think its also worth noting that people dropping 15k+ on a ticket are also the kind of people to just own a private jet and not fly on that airline Obviously not all but probably a few Idk I'm not rich enough for that kind of knowledge
Comment from : Voltingshock 6

Well explained However, after covid the overall model has changed dramatically And especially in short-medium haul, the economics are completely different Insider here 🥸
Comment from : ATHGT

Is it expensive to fly Transatlantic Routes?
Comment from : Ally Soobratty

As someone who has never been on a plane and eager to leave Africa I say strap me to the ceiling I don't care I just wanna explore the World
Comment from : Visualbree

So I am on the planes just to fill up the seat as far as the airlines are concerned
Comment from : Kanga Roo

When you're suspended mid air and could crash to the ground for any reason at any minute, there is no class Everyone on that mfr is riding in Vulnerable Class Mid air transit is not the place to be snooty and divided Look what happened on the Titanic
Comment from : Head Liner

As someone who has flown many times I can fully say first class is the biggest scam My friends who still pay for first class say “well we get free drinks” to which I always say we’re still on the same flight breathing the same air and the drinks aren’t “free” they’re included in your ticket price 😂😂
Comment from : David Villa

Flying economy in a few days Feeling good after watching this lol
Comment from : genes2311

This was 5 years agobrNowadays things are changing and new trends are rising upbrEconomy class is never as before!
Comment from : scotty

Tell us why a round trip is often cheaper than a one-way trip
Comment from : Sentient #6

This is completely wrong, once upgrades and discounts are factored in the revenue is a lot less than simply some random ticket price for business/first x number of seats
Comment from : rickdaniels1000

Saying economy tickets don’t make airlines money is just another way of saying: economy tickets is the backbone of the industry and first and business are profit
Comment from : irvingg71

This really should have been explained by John Cleese and the Two Ronnies:brbr"I am First Class"br"I am Business Class"br"I am Economy Class"br"I am for those who can afford the best"br"I am for those who can't afford First Class, but refuse to fly Economy"br"Iknow my place"
Comment from : Sgt Bilko

I've recently reached the top 5 income level in my european country, and I'm still wondering who are the people who can afford anything above economy
Comment from : Gothos

True per square meter more profit- however not enough customer to support that lux square meter- so economic class helps airline make more profit just like the luxury class … 🐋🐋
Comment from : Kittiemamba

Nobody is going to pay 3x economy price for premium economy Sure, it might be the price shown when you looked up the price but majority of those seats are not going to be sold at full fare but likely thru redemption and frequent flier upgrades
Comment from : akari

Paying so much for a temporary chair is hilarious
Comment from : Bloody_Crow

Fact is, their required to offer economy seats by governments VA has business class only flights, and is viable Thanks for excellently reminding us how poor we are 😀
Comment from : ssssssssss

Everyone in economy is just there to fill up the plane😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂
Comment from : Alex Simiyu

95 people fly in first and business are on expenses of their company’s money, not their own
Comment from : Tapan Lakdawala

Omg just to fill the plane
Comment from : Kait Carleton

Can you convert dollars in INR
Comment from : MTR EDUCATION

This was when the meme started
Comment from : Tengku Aliff

I simply hate classes
Comment from : sunset30

It's amazing that the economy customers today have better amenities than the premium customers fifty years ago Makes me feel blessed and grateful that I live today
Comment from : Anna Kirshenbaum

Also, important to note that those 14 first class seats are often empty or filled with business people using their airmiles First class cabins don’t make anywhere near the money you suggest in this video As you say, business class is the cash cow
Comment from : Astro_Dav

This is a way too simplified explanation The worst is the idea that airlines can't make a plane that is all premium but also that economy passengers are just to "fill the plane" That's just ridiculous And no mention of the fact that airlines give free upgrades to frequent flyers on domestic routes Yes, pasengers who pay full price for first class pay a higher margin than economy but to pretend that econony class is an insignificant financial afterthought is ridiculous and the data given was very cherry picked and not at all an average flight
Comment from : DaleC1980

Airberlin is bankrupt for a few years already They dont fly no transatlantic no more 8:36
Comment from : Georg Hanslmaier

Most people in econ+ and first class were upgraded Very few of those seats are sold at full price
Comment from : Ben Penrod

ryanair: class? what's that?
Comment from : Toru the Red Fox

I used to say I want to be rich enough to fly first class Girl…I want my own airline now lol
Comment from : Chanchanko

Don’t be a broke man Buy business
Comment from : Daniel

This is why it's hilarious when normal cabin passengers complain about passengers being able to eat lobsters on planes in the "good old days" Back in those days, you'd be selling your car to afford a plane ticket You're paying a relatively cheap price to be provided a spot to get you from point A to point B You simply get what you're paying for
Comment from : Benny C

3:00
Comment from : Lincoln Harrison

But the economists forget that not many people able to pay the high prices of business or first class
Comment from : Peony

This is a perfect example of third degree price discrimination, which is the selling of the same product at different prices to different groups of consumers, for reasons unrelated to costbrbrAirline companies operate in an oligopoly market - so they would have the ability to set prices They also need to have the ability to segment the market, each having different PED (price elasticity of demand) values Resale of airline tickets in the dearer market must also not be possiblebrbrFor richer people, airline ticket prices make up a smaller proportion of their total income, hence demand for airline tickets is price inelastic, so airline companies will increase the price of airline tickets as this would lead to a less than proportionate change in quantity demanded of airline tickets, causing a rise in total revenue for the airline company On the other hand, for ordinary people, airline ticket prices make up a larger proportion of their total income, hence demand for airline tickets is price elastic, so airline companies would charge a lower price as this would lead to a more than proportionate change in quantity demanded for the airline company In both markets, this would increase the total revenue the airline company gets
Comment from : Bryan Ang

airline points?
Comment from : Uteligger

Love the man how to speak to audien, no fast or slow that make me understand
Comment from : Kusuma Wijaya

I’m getting Titanic vibes
Comment from : Jay Henry

I flew BA first class to & from Heathrow this past summer on a 777 First class just ain't what it used to be While it was roomy, and the service was great, the food was meh and the condition of the space was very worn I would rather save the money and fly business class next time The Middle East carries probably have a much superior first class, I'd imagine
Comment from : West Haven, OR

I fly sometimes Mostly business because I like the more premium feeling And the whole time I have noticed exactly the same as described in the video Even flying with a discounter airline I mostly spend double the amount just for better treatment than the usual guest So yep economy is there just to fill the plane Like the third class in the Titanic
Comment from : KaiRaphixx

Why did this remind me of snowpiercer
Comment from : Arianna Shrum

I remember my entire family once getting upgraded on an Etihad flight for free from Economy to Business, it just happened at the gate for no apparent reason
Comment from : Mohsin Siddiqui

DISLIKED FOR USING FEET FKING USE THE METRIC SYSTEM!!!!!!!!
Comment from : Jion

The question is who the fuck is stupid enough to pay those prices?
Comment from : John Lenin

I didnt realize 40 of an aircraft's passengers were in premium cabin I always wondered who can afford $5-$7,000 seats, I guess everybody but me
Comment from : Jerry Nadler