When Sabena was flying to both destinations, FIH has a better yield then JNB.teddybAIR wrote:IMHO there is no such thing as a high yield market. There are however high yield routes (city pairs) and there are certain airports or cities which combine more than 1 route which sport high yields. And simply stated: a high yield route is a route that results in a high contribution to the company's margins. Now, let's keep in mind the drivers of margin and you know which elements (in combination or individualy) constitute a high yield route: volume (+), willingness to pay (+), demand for value added services (+), costs (-), etc.Vinnie-Winnie wrote:Ncb,
Let me remind you of the definition of a high yield Market:
A high yield Market is either a destination where there is low supply and high demand (connecting flights are high supply even though they are not as attractive for high paying passengers),or a Market where there is a high % of business pax, or a Market where ties between the city-pairs is high, or finally a market that has low weight, low volume time sensitive cargo with little competing supply of cargo space towards that destination...
Today, actual revenue from FIH for Brussels Airlines is more then what they eventually could charge for JNB. Tickets for Kinshasa are more expensive, operating costs are less. And discussions/complaints about free baggage will soon be gone, with Hewa Bora no longer in play (HBA was offering 50 kg for its inbound flights to Africa).
