How can airlines, particularly budget airlines such as Airasia can afford to give million of free seats but yet still make profit on such offer.
Here is how according to Chris Anderson in his book ‘Free: How Today’s Smartest Business Profit By Giving Something For Nothing‘.
AirAsia operates in a market identical to that of Ryanair in Europe.
In fact, the airlines actually replicate whatever Ryanair does successfully – and become the most profitable airlines in the country!
Every year, about 1.3 million passengers fly from London to Barcelona. A ticket on Dublin-based low-cost airline Ryanair is just US$20.
Other routes a similarly cheap, and Ryanair’s CEO has said he hopes one day offer all seats on his flights for free (perhaps offsets by in air-gambling, truning his planes into flying casinos).
How can a flight across the English Channel be cheaper than a cab ride to a hotel?
Cut costs. Ryanair boards and disembarks passengers from the tarmac to trim gate fees. The airline also negotitates lower access fees from less-popular airports eager for traffic.
Ramp up the ancilliary fees. Ryanair charges for in-flight food and beverages; assesses extra fees for preboaarding, checked baggage, and flying with an infant; collects a share of car rentals and hotels reservations booked through the Web site; charges marketers for in-flight advertising; and levies a credit card handling fee for all ticket purchases.
Offset losses with higher fares. On popular travel days the same flight can cost more than $100.
These school children probably unaware the direct and indirect cost of those cigarettes not to mention it harmful effect to their health.
It’s not a cheap habit to begin with. A smoker would spend more than 73,000 in 20-years! The price of a decent car – think of Toyota Vios!
In a year the direct and indirect cost of smoking will be more than 6,150 – more than enough to cover a Perodua Viva installments for a year!
Here is how those figures derive.
According to Malaysia Ministry of Health, not only it includes the price of cigarettes that we pay but the future costs to upkeep our health due to smoking.
Direct cost is out of pocket costs or a monetary cost to smokers and society. For a smoker direct cost is how much money he spends on cigarette.
In addition medical costs of treating his illness induced by tobacco is also part of his direct cost.
Currently a 20-a-day smoker of a premium cigarette will spend RM10.00 per day. In one week he will spend RM70.00 and RM3650.00 per year.
If smoking habits continue for 20 years, he will spend whooping RM73,000.00 – enough to buy decent car in Bintulu!
Had this amount been saved it can pay a-four years study in undergraduate program at an institution of higher-learning or earned returns on investment in many interest bearing financial instruments.
The cost of a treatment at the hospital due to asthma triggered from smoking cigarette is also considered as direct cost.
Hence a total direct cost to this smoker for a year is (RM3650.00 + RM2500) = RM6150.
(Note: Shahrul did name the school in his initial post see [screenshot]. In his second post, photo and school name had been duly removed and edited. We obliged to duly removing the school name. Thank for all the comments – we appreciate it. Rubiah threatening us won’t solve the problem. We’re willing to publish your proper comment mail them to us at [email protected])
In this era of social media personal feuds that begin in the real world could extend it arms into the realm of cyberworld.
Two police reports were lodged separately yesterday at two ends of the State – in Kota Samarahan and Lutong allegedly over ‘threats’ posted on Facebook.
At Kota Samarahan Suzie Kulleh lodged a police report after receiving threat from another Facebook users named Mafri Iboi.
Mafri Iboi later identified by Suzie as one Mohammad Azfil, allegedly working at Petronas-Bintulu.
Mafri Iboi aka Mohammad Azfil posted a comment that read: “Kamu takut mati ka suzie? saya jumpa bomoh kasi santau sama kamu sampai mati mau ka?” – “Do you afraid to die Suzie? I’ll see a shaman to ‘santau‘ or [put a spell] on you to die, do you want that?”