After almost $600,000 in subsidies, AAI pulls out of DAB

[maxblast72]

I know. That's why I said "so-called deregulated."


It's only a free market until that market tries to correct itself. Then our tax money is rushed in to prop up the weaker company. I love it!

Daytona Beach is not giving Airtran a break on some fees because Airtran is a weaker company, Daytona Beach is giving Airtran a break so the consumers in Daytona Beach market can enjoy lower ticket prices which stimulates traffic in and out of Daytona beach.

Daytona Beach chamber of commerce can see what has happened to ticket prices in Knoxville, TN and Greensboro, NC after Airtran has left and does not want that to happen in Daytona Beach if possible.

 

[CitationLover]

Daytona Beach is not giving Airtran a break on some fees because Airtran is a weaker company, Daytona Beach is giving Airtran a break so the consumers in Daytona Beach market can enjoy lower ticket prices which stimulates traffic in and out of Daytona beach.

Daytona Beach chamber of commerce can see what has happened to ticket prices in Knoxville, TN and Greensboro, NC after Airtran has left and does not want that to happen in Daytona Beach if possible.

so the raw materials prices (oil) keep going up, but you want LOWER ticket prices while negotiating?

 

[maxblast72]

so the raw materials prices (oil) keep going up, but you want LOWER ticket prices while negotiating?

I never said that we need to lower ticket prices. These cities just realize that Airtran prices will be lower than legacy prices any day of the week. Airtran can make money at lower ticket prices due to lower overall cost structure and a simpler business model (no RJ's).

That is not to say that ticket prices won't be rising significantly for LCCs and legacies soon due to fuel cost (as they should), but just that our prices would always be lower than legacies overall.

 

[Ty Webb]

Baby needs a new pair of shoes!

Let's call it what it really is . . . . AirTran saving some money where they can, so they will have more to spend at the negotiating table. .

 

[ultrarunner]

Subsidies in an effort to lower ticket prices in order to stimulate traffic are only going to go so far...the airline STILL has to make money and the seats STILL have to be filled. You can lower that ticket price all you want, but that is just not going to force folks to all of a sudden have a NEED to fly.

 

[Moustache]

Explain to me again why $600,000 of my tax money is being used to fund and promote "cheap" air travel in a so-called deregulated market?

Vote and don't bitch to me!!!