Undercutting!

[Pringle]

Chaps,

Just to let you know I have started up Midland Cargo. We have a Cessna 172 (Mainly to get me around!), 727-100 and a C-130 on lease. I'm currently running one main route from Birmingham to Paris-CDG. We have listed our tickets at $89 however we can't carry any pax, so I'm not trying to undercut you all ;-)

Happy flying

[RAF_Quantum]

Hi,

If you are carrying cargo, I don't really understand why you set a lower than standard fare . It could have an affect on anyone flying that route by you showing the lower fare as I'm not sure it takes a cargo only aircraft into effect. CBFS only ever use standard fares as we do not wish to undercut any other VA.

Regards

John

[DaveB]

Yup.. I'm pretty certain that's the case John. I remember a while back having a minor set-to with another VA CEO for undercutting the price at Birmingham (which is already a darned expensive airport to operate out of). We don't need to be paying more for fuel and carrying less pax :roll:

ATB

DaveB :tab:

[Pringle]

According to the site the standard cost from EGBB to LFPG is 89, CBFS are currently charging around 140

[DaveB]

Hi Tom

Have you got your head around the 'Ticket Factor' yet?? It's something new to this client and also something many haven't got to grips with yet. Take a look at John's post at FSA (there's a link on the main site too) for further information ;-)

ATB

DaveB :tab:

[RAF_Quantum]

Hi Tom,

Think we got our wires crossed. From the thread title and what you explained, I got the impression that you had reduced the fare from standard to $89 when in fact, as you correctly stated subsequently, that is the standard fare for the route, I didn't check, sorry. The ticket factor does make interpreting fares a bit difficult as with the different Ticket Factors on the aircraft, the standard fares are different dollar values depending on what TF is applied. I've made the suggestion to Joe at FSA to revert back to one 'standard' fare which will show for all types on the routes and then move the ticket factor calculation into the client. At least that way it would be easier to compare the fares and if a change is made to the TF then it is updated automatically and immediately as the client would 'fetch' the TF for each flight.

Good luck with your VA.

Regards

John

[cstorey]

The Office of Fair Trading are investigating you all for price fixing

[DaveB]

That would certainly add a new dimension to VA flying!

ATB

DaveB :tab: