|Quoting HAL (Reply 48):|
Then let's try a closer distance. Phoenix to Tucson is about 108n.m.
Mesa charges $238 (according to expedia) for a one-way purchase with less than 7 days notice. Distance has much less to do with airfares than most people believe. The per-cycle cost is what drives airfares, not distance. It doesn't matter if you went across town, it still costs a large percentage of what it costs to fly across the country.
This comment right here just proves that you in no way work for any airline and have little understanding of airlines. Mesa does not set any fares or do anything except be a "mass transit company" for US Airways. US Airways sets everything from schedules to fares and Mesa has no say in it. Also, there is virtually 0 "true local" traffic from PHX-TUS, as its an easy 2 hour drive. US has those flights for connections, and the fares are likely $30-$60 more expensive than Phoenix. If you do a normal square root of the miles pro-ration, then the PHX-TUS leg of a connecting itinerary is unequivically being sold WAY below cost. Should that be considered predatory? No. Its worth the loss on one route for the betterment of the entire company (US). You could say that the loss of go! in the short term while trying to prove its viability of offering a stand alone product is worth the loss to the whole Mesa Air Group. Granted that was before they got hit with $80M judgement. Now, it likely isnt worth it.