Published at Friday, March 29th, 2019 - 18:29:18 PM. Type of airline. By Adelyte Möller.
Airline financing is quite complex since airlines are highly leveraged operations. Not only must they purchase (or lease) new airliner bodies and engines regularly they must make major long-term fleet decisions with the goal of meeting the demands of their markets while producing a fleet that is relatively economical to operate and maintain; comparably Southwest Airlines and their reliance on a single airplane type (the Boeing 737 and derivatives) with the now defunct Eastern Air Lines which operated 17 different aircraft types each with varying pilot engine maintenance and support needs.
Computers also allow airlines to predict with some accuracy how many passengers will actually fly after making a reservation to fly. This allows airlines to overbook their flights enough to fill the aircraft while accounting for no-shows but not enough (in most cases) to force paying passengers off the aircraft for lack of seats stimulative pricing for low demand flights coupled with overbooking on high demand flights can help reduce this figure. This is especially crucial during tough economic times as airlines undertake massive cuts to ticket prices to retain demand. 64
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