Today, an anonymous guest post (from someone with an ANU connection) ponders airline pricing.
A recent article in the SMH reports that from February 1, Air France and KLM will begin charging obese passengers 75% of the cost of a second seat if they cannot fit into one seat. This story re-ignited an interesting question I’ve had regarding airline tickets. I have always been perplexed by the issue of pricing after a trip to the Middle East.
After spending far too much money on carpets in the souks, I arrived at the check-in counter at the airport to be told that my ticket only allowed 25kg of baggage and that my recent acquisitions had sent me 5kg over. If I wanted to take them with me, I had to pay the surcharge. The exact amount escapes me, but I was told it was to cover the cost of transporting the extra weight.
What puzzled me about the explanation was that standing at the next check-in counter was a sizable chap (possibly around 110kg) with 25kg of luggage. He wasn’t charged excess since his luggage was on the allowable limit, but if the price of a ticket represents the cost of transporting weight; your weight, surely his net impact on the overall weight of the plane is far greater? (I’m an average male, 175cm tall and weighing around 78kg). With my luggage, my total weight on the plane was 108kg, much less than the 145kg of my fellow passenger.
Simple flight dynamics says that the heavier the plane, the more fuel it will use to fly. Presumably, most other costs of operating an aircraft are fixed (salaries for crew, catering, landing and docking levies, lease payments on the aircraft), which leaves fuel. If the largest variable cost of running a plane is determined by the fuel used to transport the overall weight (plane, passengers and luggage) of the aircraft at takeoff, surely the current pricing mechanism for airline tickets is economically inefficient?
Wouldn’t it be far more efficient to charge people based on their total weight impact on the plane (i.e. body weight plus baggage)? That way, slim travellers with little luggage do not subsidise heavier people with large amount of baggage.
Any theories as to whether the suggestion of our anonymous poster could – well – fly?
(xposted @ Core Economics)