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Date: 2014-04-30 04:48 pm (UTC)
OTOH, the customer has a fairly good idea of the risk, because the airline can't escape its reputation. One way to look at it is the customers are differentiated in the money value of not getting there on time. If you're a law firm going to pitch a big client, or even a business sending a "professional", delay of a person costs several hundred dollars. If you're a tourist, it may be $100 or less. So "What would you pay to avoid a 5% chance of being delayed 1 day in arrival?" may be vastly different. So the optimal way to run an airline may be different for the two classes of customers.
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