NM:For example, BA may offer a very low fare (some airlines even sell tickets for $1), but the number of seats sold at that fare level will be restricted. They will also sell thickets on the same flight for much higher amounts
Hi NM- I disagree with this......here is one case study. Similar UK and Australian domestic routes are used as examples.
BA: London Heathrow-Edinburgh (Duration-1:25) for 1ST of July 2007 (this Sunday). ALL OPERATED BY British Airways (mainline)
Fares inclusive of all taxes:$162.50 (BA1462), $162.50 (BA1464), $188 (BA1458), $188 (BA 1452), $188 (BA1454)
Average Price:$177.60
Easyjet: London (Gatwick)- Edinburgh (Duration 1:25) for 1ST of July 2007 (this Sunday)
Fares inclusive of all taxes: $122 (flight 701), $138 (flight 703), $138 (flight 713), $164 (flight 705)
Average Price- $140.50
QF: Sydney-Brisbane (Duration- 1:30) for 1ST of July 2007 (this Sunday)
Seven cheapest fares inclusive of all taxes:$221 (QF540), $221 (QF550), $251 (QF548), $276 (QF546), $276 (QF532), $276 (QF544), $306 (QF502)
Average Price: $261
DJ: Sydney- Brisbane (Duration- 1:30 for 1ST of July 2007 (this Sunday)
Seven cheapest fares inclusive of all taxes:$149 (DJ 207), $179 (DJ211), $209 (DJ217), $209 (DJ221), $209 (DJ231). $209 (DJ237), $209 (DJ269)
Average Price: $196.14
Taxes-QF: $36 (this price includes a $31 fuel fine imposed by QF)
BA:$58.85 (this price includes a $15 fuel fine imposed by BA)
Easyjet:$40
QF's prices not only start significantly higher in comparison to BA, but they end up significantly higher as well (compared to BA).