Reply To: BA turning into Low Cost with “Buy On Board”

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vscxfan
Participant

I agree witrh BinMan62:

Economics 101 (a course failed or avoided by BA management):

1) Marginal cost to pax of free (bundled with fare) sandwich = unknown
2) Marginal utility of same = significant
3) Marginal cost to pax of BOB sandwich = €3 + lost goodwil toward BA
4) Marginal utility of same as perceived by former BA fan = under €3.

Of course this only matters if fare/schedule/route are comparable.

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