PSA and piedmont

[cheapgreek]

If the agreed upon price is the maximum you are willing to pay then yes 1.50 more will kill the deal. Otherwise it's not a maximum. Do you not have limits to what you'll pay for things? Must be nice if you don't.

$50.00, $75.00, $100.00 is a limit, $1.50 is not a limit as it is so small it is not worth bothering over. $1.50 is not a deal killer, its only 6 quarters, pocket change.
I would never let $1.50 change or ruin my plans, again its only pocket change and those who fly never alter their plans for $1.50, its just not done and if their limit was $300.00, what difference will it make if the price is $301.50? None what so ever. A limit has to be an amount of size, What happens when the exchange rate changes and instead of getting $75.00 Euros for $100.00 US, it now is $73.50, do you drop your plans to visit Europe? Its time to get real and I can only imagine what it must be like splitting a restaurant bill with you. To make an issue over $1.50 would show just how small and petty a person would have to be.
You are in a league of your own, all alone.

 

[kf4amu]

$50.00, $75.00, $100.00 is a limit, $1.50 is not a limit as it is so small it is not worth bothering over. $1.50 is not a deal killer, its only 6 quarters, pocket change.
I would never let $1.50 change or ruin my plans, again its only pocket change and those who fly never alter their plans for $1.50, its just not done and if their limit was $300.00, what difference will it make if the price is $301.50? None what so ever. A limit has to be an amount of size, What happens when the exchange rate changes and instead of getting $75.00 Euros for $100.00 US, it now is $73.50, do you drop your plans to visit Europe? Its time to get real and I can only imagine what it must be like splitting a restaurant bill with you. To make an issue over $1.50 would show just how small and petty a person would have to be.
You are in a league of your own, all alone.

So why don't airlines just raise ticket prices 1.50 tomorrow?

 

[cheapgreek]

So why don't airlines just raise ticket prices 1.50 tomorrow?

United tried to raise fares a few weeks ago and then backed down because the other airlines did not go along. When they raise fares, it is at least $10.00 per one way flight and $20.00 on a round trip.
Fares are adjusted many times during the day depending on seats sold, the closeness of the departure date, and what other airlines are charging for the same service. Non stops tend be to priced higher due to customer preference.
I don't know why you have this fixation on $1.50, but when you play with pennies, you make pennies and when you play with dollars, you make dollars.
Would you cancel a trip to Europe because the exchange rate cost you $1.50 more for $75.00 euros than what the exchange rate showed a day or two ago? Does $1.50 mean that much to you?
Thank long and hard before you reply and read your reply several times before posting it. Better yet, show it to someone else and see what they say.

 

[kf4amu]

First, if you forgot, 1.50 is the increase in fees at HHH. Secondly, why didn't a 10 dollar fare stick? Because yield management determined enough people will not pay that extra money to make it worthwhile. That's who adjusts those fares all the time, and guess what? It's not always by 10 dollars. Sometimes it's by 1.50

 

[BoilerUP]

So...working on your MBA or what?

 

[cheapgreek]

First, if you forgot, 1.50 is the increase in fees at HHH. Secondly, why didn't a 10 dollar fare stick? Because yield management determined enough people will not pay that extra money to make it worthwhile. That's who adjusts those fares all the time, and guess what? It's not always by 10 dollars. Sometimes it's by 1.50

The fare did not stick because the other airlines did not go along with it, it had nothing to do with yield management. do a google search and see that the reason was the other airlines did not their fares also. This happens many times, one airline will raise fares and never by $1.50 on a friday and if by monday the other carriers balk at the increase, the first airline, not wanting to show higher fares than their competitors will back down.
I can't make any simpler than this. The PFC fee is set by airports and it has a limit of $4.50.
There has never been a fare increase of $1.50. Know your subject before you comment on it. I'm done trying to explain this as no one else has made the claims you have or supported your position. You are wading into a complex area of business without a working knowledge of it. Its hard to have an intelligent conversation with only one person. You are all alone on this one.

 

[AirHead99]

WTF is up with the last 4 pages of nonsense. I can't be the only one.

 

[FMEpilot]

Soooo merging?

 

[WSurf]

WTF is up with the last 4 pages of nonsense. I can't be the only one.

True! I think the less we all give a Fuk the happier we'll all be

 

[kf4amu]

The fare did not stick because the other airlines did not go along with it, it had nothing to do with yield management. .

Of course it does. If all the airlines could make more money after a 10 dollar fare increase they would go along with it. Why wouldnt they? Because it reduces demand too much.

I don't care if its a penny. Some penny pinching person out there will not buy a ticket above a certain price.

You don't need an MBA to realize higher prices = lower demand. And you don't need to talk to more than one person to learn it, as I'm teaching you right now.

 

[cheapgreek]

WTF is up with the last 4 pages of nonsense. I can't be the only one.

Sorry, I could not believe anyone on this site knew absolutely nothing about airlines. Sorry I wasted so much time trying to explain a simple concept to a skinflint who values $1.50 so much.

 

[kf4amu]

The only nonsense is the idea that a price/demand curve flattens out for the first 1.50 increase above current levels.

 

[BoilerUP]

Theory taken from an Intro To Economics textbook sounds great...but its just that - theory. And like I've already said twice, the real world economics doesn't always follow the way textbooks say they should.

Yes, any increase in price changes where a product falls on the price/demand curve. However, that change might be imperceptible (ie. it doesn't end up actually influencing purchase decisions or changing consumption).

A buck fiddy change to a Jr. Bacon Cheeseburger is going to flip the price/demand curve on its lid; the same change to a car will be totally negligible. An airline ticket falls somewhere the middle, and in the grand scheme, a <0.5% change in price isn't going to have a material impact on the number of tickets purchased.

Further, Hilton Head is much more of an inelastic market when it comes to pricing than, say, Orlando...or even Savannah. A higher income demographic that places a premium on time, with limited competition for the service, does that for you.

Example: Jet-A @ HXD Signature is about $8.50/gal while the same gas from Signature at SAV is about $6/gal.

Class dismissed.

Now that we've settled who reads a WSJ, can we get back to "As The WOs Turn"?

 

[Flyin2low]

Are PSA and PDT going to merge or be shut down?

 

[AirHead99]

Neither. The current hubub is overblown. PDT may shut down, but that is in the ~3 year timeframe when the fleet size shrinks to an untenable number.

 

[cheapgreek]

Neither. The current hubub is overblown. PDT may shut down, but that is in the ~3 year timeframe when the fleet size shrinks to an untenable number.

I wonder what that number will be? 934 is out of service, 906 is parked and 907 and 908 will time out by the end of the year. For many years PDT has said they are actively looking for more aircraft but has not closed the deal on a single one.
They went from 6 bases to 3 in a few years and parts for the 100's have been hard to find.
Any word if 934 will be written off or repaired?