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  • #001404

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  • 0 - None Assigned

  • Not a Bug

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Far too many passengers travelling, significantly exceeding demand

Posted by Pineair on 03 September 2012 - 12:37 PM

This is an example from S3A

Route KMG- XIY - Y passenger demand is shown as 900.

Pineair flying at full capacity with 859 Y passengers, none of which are connecting passengers. Fare $80

Pearl flying at full capacity with 1277 Y passengers, none of which appear to be connecting. Fare $45

White Star China at full capacity with 837 Y passengers, none of which appear connecting. Fare $60

HongKong Dragon Airlines has capacity for 552 Y passengers carrying 232. Fare $179.

Have changed Pineair fares to $40 and then to $120 but still at full capacity. Something here is presumably not working as it should be. Incidentally as HongKong is running with a deficit of nearly $15billion.not even sure it should still be in operation.

Game is very competitive but little point in reducing fares below that of competitors, reducing operating profit, if it isn't going to impact on your competitor.

There are certainly instances where airlines charge too low for fares which creates a realized excess demand in the city-pair. This is most common where multiple airlines mindlessly click on "Match Lowest Fare" without doing due research on the route. It also happens when an airline, who also had large capacity and low fares on the route, disappears. You can see the latter in action when you start up trunk routes in worlds ending soon.

$179 most likely seems to be the correct price-point. If all four airlines were to charge $179, then you would see your normal distribution of market share and load factors. Then the mindless cycle of "Match Lowest Fares" begin again.

changed status to: Not a Bug

Ridiculously low fares will generate junk demand for those airlines but it probably won't make them money. This is intended behavior.





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