I fell in love with the economics of flight when I did a case study on Southwest Airlines as part of a strategy course during my MBA.  That case study concentrated primarily on how Southwest found efficiencies that allowed them to dominate the market and how other airlines tried to emulate what they did.

Ever since then, I have been interested in the economics of airlines.  Just the other night, I came across a video that looks at why airlines don’t put forth much effort in Economy, are eliminating First Class and have focused on Business Class.

The video does a good job at explaining the economics but I will say that there are some oversimplifications in the video but it is still worth a watch.

Jayce is the founder of PointsNerd, and avid traveller and a teacher by nature. He prides himself on flattening the learning curve through step-by-step guides because everyone needs to start somewhere.


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