Well, I think the target customer is not the one who buys commercial flights but maybe the one who usually reserve private jets to fly to the Bay Area from LA. $1,000 for this kind of customer could be extremely interesting.
The people willing to pay 1k/month for this are probably not in the group of people looking for $80 specials.
Those specials are also inflexible and require either advance planning or a lucky weekend special. The target market for something like this is frequent fliers who need complete flexibility.