In the News
Does FlyBe have a future as a viable business?
Just a really interesting article - full of applied microeconomics- which considers whether Flybe is a viable business or is swimming against the tide?
The article considers whether Flybe's business model is appropriate or not - noting that it is neither a low-cost carrier nor a flagship carrier, as well as the fact that it is liable for Air Passenger Duty (APD) for every single flight.
Thus, if you think about it there are lots of things to be discussed - fixed and variable costs, economies of scale and the different objectives of a firm. You might also consider different equilibrium positions - perhaps Flybe is more of a loss-minimiser than a profit-maximiser?