12 replies to this topic

[Amadeus Inc.]

Seems like a nice hubbing strategy, creating ghost demand.

 

http://ae31.airline-...fo.php?city=NTE

 

City Frequency Daily Seats Daily Demand Average Ticket Prices Market Information

(BRS) Bristol 180 / week     4,629 Y 4 F 22 C 161 Y     $650 Y Research

 

[Stryker8686]

I guess that explains how he has 5 million passengers 

[Luft]

Wow...that's sad.

[Superman]

Give us more tricks in the game

[Sunshine Airways CEO]

hubs are amazing

[Hawai'ian]

Nice trick. Would be a shame if Yuxi fixed it....

[Amadeus Inc.]

ridiculous 

[Sunshine Airways CEO]

We had a similar issue before (years ago) where a route can become profitable by creating excess demand throwing off the supply/demand algorithms.

 

I don't know what supply and demand models are used for AE but in theory this could be explained with economics:

 

We know (or should know) equilibrium price is where supply = demand, thus a high demand route can be flown with a frequency of 1 and we can charge a high price for that route (demand is greater than supply)

but supply and demand curves are not straight lines, but actual curves.

Demand functions are usually 2nd degree functions and form a parabola

So where supply hits the left side of the parabola, you hit equilibrium... but if supply where to continue to increase, it may hit a second equilibrium on the right side of the parabola. here demand will always be greater than supply thus creating "ghost demand"

 

...just a theory

[vap57]

Found a few more of his tricks:

editun b 30 x weekly 2829Yseats $1850.00/ Y seat

his competition on the route:

editun emerald 6 x weekly 200 Yseats  $410.00/ Y seat
editun ba 3 x weekly 81 Yseats $410.00/ Y seat
-----------------------------------------------------------------------
edisof b 30 x weekly 2829Yseats $1600.00/ Y seat

his competition on the route:
edisof ba 7 x weekly 188Yseats $419.00/ Y seat
-----------------------------------------------------------------------
edioxf b 275 x weekly 5029Yseats $1150.00/ Y sea

no competition on this route

-----------------------------------------------------------------------

 

This kind of thing peeves me off.  I'm playing clean and idiots like this get away with it.  Can nothing be done?

[Amadeus Inc.]

how about starting an AE war?

[Aero222]

lets start the war

[Luft]

A war...in what sense?

Whatever it is, I am team Germany.

[Wyldon]