bleagle
BOEING = BEST
- Joined
- Aug 21, 2007
- Posts
- 97
Pick up an international finance book on your next layover. You may learn a thing or two. I know I did when I studied it in college.
Delta isn't "tricking" anyone into buying tickets. They have signficant demand for their international flights East of 0 Long. Those customers buy in Euros or other non US currency. A 500 Euro ticket converted to dollars is about $790 today. A month ago that same 500 Euro ticket was $735. Delta just benefited from a $55 fare increase without touching the ticket price. Do you really think they are lowering fares from Europe to the US, so they don't benefit from the declining dollar?
As the weak dollar makes international travel TO the US more appealing, the demand from foreign customers increases. This also decreases the demand for travel FROM the US which has a balancing effect on the overall demand.
Currency conversion is NOTHING NEW... buffett, gates(to name a few) have done it to realize capital gains. BUT those capital gains are subject to taxation from the good ole US Gov. I just don't see how the international flying is going to be a huge factor in DAL "domination" when open skies will increase international competition as well as LCCs getting into the intl market...eventually. How will this DAL intl increase also thrive in extremely saturated NYC airports/airspace? Don't forget about Branson, Lufthansa and other foreign carriers... even RyanAir is planning on hitting american soil....
Stay tuned ...this will get interesting.