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April 04, 2006
Flying goes the Open Source route
In 1926 an airline passenger in the US paid 44 cents to fly a domestic mile. By 2004 that yield had dropped to just over 4 cents per domestic passenger mile (figures adjusted for inflation). In 2006, over one quarter of Ryanair's passengers paid the airline 0 cents to fly (just taxes needed to be paid). Ryanair's boss Michael O'Leary hopes to up that figure to 50% soon.
So, how does he plan on making any money if he's giving the seats away for free? Easy answer if you're in the Open Source business - by getting you to pay for services or by taking a cut from additional third-party revenue. Ryanair now charges passengers for things like checking in baggage and plans on adding in-flight gambling soon.
Makes you wonder how long before you have to pay a little extra for that seasoned pilot who will get you to the right airport.
Posted by Matthew at April 4, 2006 08:49 PM