Passenger demand question

[jram]

Express air has 4 flights, he should have 17% of traffick. He is at 16%
NorthWestern has one flight, he should have 4% of traffick, he is at 7% ==> He's on price wars.
Interworld has 7 flights, he should have 30% of traffick. Maybe 29% with the small overlap between 1205 & 1300. he is at 21% ==> He's making money.
Westland has 4 flights, he should have 17% of traffick. He is at 27% ==> He's on price wars.

I don't get why he is making money... he should get the 30% of 550 pax so he should have 165 pax more or less that means his plane will fly with a LF of 55%.
with his 21% of share he should get around 115 pax and his plane should have a LF of 31%... i'm used to see profit on planes with a load that exceed 40%

[gazzz0x2z]

I don't get why he is making money... he should get the 30% of 550 pax so he should have 165 pax more or less that means his plane will fly with a LF of 55%.
with his 21% of share he should get around 115 pax and his plane should have a LF of 31%... i'm used to see profit on planes with a load that exceed 40%

Because you didn't toy enough with pricing. As long as you stay within what your customers can pay, you usually make more money with higher prices, and lower load factors. It's not always true, but typically, in such heavy fights, I'm raising my prices, and can see an increase in terms of profit. Of course, opponents also have more profits(they sell more seats without any action on their side).

What often happens on very disputed lines, is that everyone sets up standard prices, and then forgets to raise them up. So quickly, everyone is below the standard price, while the sweet spot is in fact above the standard price(the better your CI, the higher the seet spot). And everybody loses. I've seen price wars killing everyone in some parts of the game : the winner has been so much weakend that he BKs soon after his opponent.

[Sami]

I'm sure Sami has mentioned this either in official descriptions of the system or in replies to discussions relating to the system. Or at least that might be how the system is intended to work in the long run, I can no longer remember what exactly, but I'm sure I remember something about it. Certainly the economic model would seem to allow it, Business pax of course would be less price sensitive than economy pax.

City Based Demand pax model does not have fixed passenger classes but passenger types instead (three probably). They will have different priorities on what they seek (i.e. price is important for leisure travellers while business people prefer fast and reliable service).

[freshmore]

City Based Demand pax model does not have fixed passenger classes but passenger types instead (three probably). They will have different priorities on what they seek (i.e. price is important for leisure travellers while business people prefer fast and reliable service).

I'm glad I wasn't going mad, I was sure something had been said about different priorities in the new CBD system.