Concorde, Part 2. Ask what it is worth.
A questionnaire helped turn Concorde into a profitable business. Huw returns to the difference between what a machine costs to build and what people value once it exists.
THE GIST ON CONCORDE, PART 2
What did British Airways ask?
Passengers were asked what they thought their tickets cost. Many had not paid for the booking themselves and guessed more than the actual fare. British Airways raised prices towards what its customers already believed the experience was worth.
Why did the ownership change matter?
The aircraft became profitable before British Airways bought out the government's interest in 1984. Huw contrasts an undertaking judged by its construction cost with an operator asking what each seat could earn. The same aircraft answered different questions.
Why did Concorde stop flying?
The 2000 crash, the collapse in business travel after 9/11 and the withdrawal of parts support changed the economics again. Huw's closing question is what gets missed when the costs of building something become the only measure of whether it should exist.
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Quick answers
What did British Airways ask?
Passengers were asked what they thought their tickets cost. Many had not paid for the booking themselves and guessed more than the actual fare. British Airways raised prices towards what its customers already believed the experience was worth.
Why did the ownership change matter?
The aircraft became profitable before British Airways bought out the government's interest in 1984. Huw contrasts an undertaking judged by its construction cost with an operator asking what each seat could earn. The same aircraft answered different questions.
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