The dynamics of the airline industry are becoming increasingly pronounced as deregulation and competition increase. Technology or government involvement are no longer guarantees of success. However, the business model is becoming the leading factor of survival in this industry. This blog comments on the development of airline business models throughout the world, and will hopefully give some insight into airline operations, the industry, and business models in general
Wednesday, November 14, 2007
Price differentiated carbon offsets
Airlines are beginning to catch onto the wave of selling carbon offsets to passengers. However, Virgin Atlantic has calculated it down to the exact kilogram...and even categorized it according to cabin class. Not only can passengers purchase carbon offsets while in-flight, but premium class passengers will pay more. Why? Well, their IFE units are heavier and their seats are heavier so these passengers are contributing more to the aircraft's fuel burn than economy passengers. This is bringing the unbundling concept to the carbon offset table.
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