The Equilibrium of Services and Pricing

Pricing varies heavily on the quality and the amount of services that are being provided. Airlines, tend to keep the cost of travel as minimal as possible by doing few simple things:

Weight:

     Its sounds mean, but most airplane are over weight. unnecessary weight can increase the cost of operations, as the weight of the aircraft is directly proportional to to the amount of fuel it consumes. Today, fuel prices are as high as possible, and the the demand for light weight and fuel efficient planes are ever growing in todays society. Aircrafts are now being redesigned from the main frame to the engine to be as fuel efficient as possible. Thats how airlines like southwest airline are able to keep airplane fare as low as possible. Passengers are also required to pay extra if they bring more luggage than specified. This allows fares to be low as possible in todays hard economics time, which makes them more appealing to sell. 

Reductions: 

     Its one of the most painful things to hear, pay reductions. Employees often  have to sacrifice a small part of the pay in order to fight the falling economy. Further more, staffs are also reduced in some cases, as a result, the demand for pilots have decreased exponentially in the past few years. Many pilots regardless of their status were forced to leave as airline either faced bankruptcy or staff reductions. The dramatic increase of fuel, has forced flight schools to increase their tuition fee by multiple factors. 

Fewer Services:

     Sounds strange, no food service on a airplane ? Yes, its true. Despite this sounding like a nightmare, only a few companies have taken this step to reduce the ever rising cost of operations. Passengers are required to bring their own lunch with few restrictions. Though it is highly impractical, most airports would face this as an act of breaching national security. Though this method is not recommended by many airports, only few countries allow this procedure to be practiced. 

In conclusion:

The main goal of a Airline company is to maintain a balance between the pricing a services, in order to make deals more appealing to both the customers and the corporation. in theory benefits must out weight the liabilities to make a business more profitable.