Thursday, May 20, 2010

The three euros

Few stuffs are hard to believe. I have bought 1Kg Tomatoes for 2.5 Euros and a flight from Pisa to Maastricht-Aachen Airport for 3 Euros. A Mc-Chicken costs 3.2. So how can even a cheap airliner provide a 1000 mile flight for 3 Euros? The cheapest train ticket costs 100+Few of the notable cost reduction mechanisms i found are
1. You have to do a web check-in, a print a boarding pass for your own. So reduced number of staffs and fixed costs in the form of printing machines
2. For every check-in baggage you have to pay around 4 Euros extra
3. They have some add-on taxi offers (from 20 to 40 euros were profit sharing happens i guess)
4. Ryan air doesnt fly to busy airports. Moreover some of the airports they are flying does not warrant taxes.
5. There are no daily flights in same route, which means efficient utilization of flights
6. Different mode of payments are charged in different ways. Mastercard debit is free while visa cards we have to pay around 5 euros extra
7. By canceling you literally dont get anything back

The worse part is the number of complaints you see regarding the delayed and canceled flights. Even to talk at the customer desk you have to pay. Still when Lufthansa's and air KLM charges few hundreds of euros i guess it is worth taking a ticket for less than 10 plus have a travel insurance for say 5 and get alternate flights (get it reimbursed by the insurance) in case the flight is canceled.If air travel can be provided so cheaply, how come the indian providers are all running on losses and why they keep on increasing the charges.
More to come once i experience Ryan air!!!

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