Started by Dev Malhotra (@orbitalmechanic) ·
how American Airlines beat People Express with software
After deregulation, People Express sold cheap no-frills fares and grew like crazy. American's answer was a yield management system that could match those fares on just enough seats to fill the plane while still selling the rest at full price. People Express's founder later said they'd been profitable until American came after them with those fares.
6 sources · 49 min down the hole
How I got here
- Started with
- Why do two people on the same flight pay wildly different prices?
- Ended at
- Alfred E. Kahn
The Trail
- “why do airline ticket prices change so much” (google.com)
- Revenue management (en.wikipedia.org)
- People Express Airlines (1980s) (en.wikipedia.org)
- Robert Crandall (en.wikipedia.org)
- Overselling (en.wikipedia.org)
the volunteer auction for bumped seats is in here
- Alfred E. Kahn (en.wikipedia.org)
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