Question

Airlines sometimes offer reduced rates during certain times of the week to members of a business persons family if they accompany him or her on trips. How does the concept of relevant costs enter into the decision by the airline to offer reduced rates of this type?

Answer 1

answer:

• the most expenses of a flight are either sunk expenses, or expenses thy don't rely upon the quantity of travelers on the flight.
• the deterioration of the aircraft, compensations of work force on the ground and noticeable all around, and fuel costs, for instance, are a similar whether the flight is full or relatively unfilled.
• subsequently, including more travelers at lessened charges at specific occasions of the week when seals would some way or another be unfilled does little to build the aggregate expenses of working the flight, however expands the aggregate commitment and aggregate benefit.