The Wright fight lives

[enigma]

I'm not an economist, don't play one on TV, and didn't stay at a Holiday Inn Express last night, but I do remember some of the economic concepts that I learned over twenty years ago.

So I have a question for those of you who think that the answer to the industries problems are as close as a fare hike.....
How is the price for a good or service determined?

You can fault LCC's and non-competitive WrongAmendments all you want, but the simple truth is this: passengers don't see enough value in the services offered by full service carriers to warrant paying for said services.

Americans are extravagant, and will almost always go for luxury when they can afford it. As such, I must conclude that they would rather sit first class instead of coach; but they can't afford to do so. I too see them buying a five dollar latte from Charbucks, but that only means that they're thirsty and have no choice in the monopolistic airport environment along with the fact that they perceive value in their coffee purchase. If someone else opened a coffee shop alongside of Charbucks, that sold decent coffee at half the price, it wouldn't take long for some customers (me) to change, but some would stay with Charbucks because they perceive value in the Charbucks product.

That's the answer to this industry. Instead of worrying about fares, the employees of full service carriers should be working to increase the perceived value of their services.

 

[Flopgut]

Flop, so it's settled, you buy at the place that gives you the best value, ie, our market economy working as it should. Thats what the public is doing now, shopping for the best airfare deals, just like you, and you say they don't deserve it? Sour grapes my friend.

The market is priced as it is because of factors beyond alot of folks control. You keep harping we need to raise prices. If we raise prices, we loose market share/profits, we are not going to do that. We have and will slowly eek up a ticket price here and there, but that takes a year or two to become substantial. It's insane to think any airline would underprice thier own cost structure, what do you get? Bankruptcy. Not my fault. Not anyones except those who control the companies in question.

Off topic: Health care, BMW pays $450 per year per employee for health care, Toyota $190, GM $1,800, Ford $1,500. Whats wrong with that picture? So now we should hate the doctors, not. I sure like the guy who graduated cumma suma whatever checking me out, sts.

Frozen bananas? Too funny, make daiquiri's!!

They hired Putnam, or Casey did, to help pull Braniff out of trouble. Casey was former American. Now, do you really think Casey hired Putnam, then let him run amok and doom Branniff? Hardly, the failure of Braniff was set in stone long before Putnam set foot on property. If anything, Casey is to blame (former AA), you do the math.

Well, as long as we understand value is not always in price and I do try to buy union.

It would be nice to see airfares go up for all of us. I think your airline could raise fares now, in advance of any future need, and reap some huge bucks off those fuel hedges. For some reason, the traveling public is accepting these sorts of increases in other aspects of their consumption, why get left behind?

I'm not sure your operation does not transcend most aspects of market share. I don't know enough about that really.

Harding Lawrence may still be right, deregulation may still not work. His time frame will no doubt be off. And I don't really believe that about Putnam, too much conspiracy even for me.

 

[Mugs]

Another problem with depressed airfares is the depressed state of aviation funding from things like the Aviation Trust Fund. How would we have ever built the infrastructure we now have if tickets had been going for peanuts for decades? Today, we can hardly afford to run the FAA let alone make the additions and improvements that are badly needed.

 

[scoreboard]

I don't think those two are directly linked. Politicians. Thats the problem. Theres funding, just what it is being released for is another story.

Ticket prices are not as much a factor, yes, fees are sometimes % based, but they can raise the percentage to cover. Most fees are per flight segment, somthing SWA does not like, it means the guy/gal flying first class SEA to Hong Kong pays the same as a flight from AUS-DAL, hardly fare/fair, it means my little 737 is paying for repaving due to damage by a A360 or whatever that big thing is.

 

[Mugs]

I don't think those two are directly linked. Politicians. Thats the problem. Theres funding, just what it is being released for is another story.

Ticket prices are not as much a factor, yes, fees are sometimes % based, but they can raise the percentage to cover. Most fees are per flight segment, somthing SWA does not like, it means the guy/gal flying first class SEA to Hong Kong pays the same as a flight from AUS-DAL, hardly fare/fair, it means my little 737 is paying for repaving due to damage by a A360 or whatever that big thing is.

Not correct. Ticket prices are the largest factor. The main driver is the tax (7.5% I believe) on the airfare itself. This makes up 50% of the Funds revenue. About 20% comes from the segment fee you are talking about. That figure is nearly matched by the 15% that comes from taxes on international departures and arrivals.

 

[Flopgut]

scoreboard: I mean this in the nicest possible way: You got a big freebie there at Love. The A380s will be mothballed before the rest of the industry recovers from the DFW/WA debacle. We all have to pay to play...another reason to raise fares maybe.

respectfully: flop

 

[scoreboard]

scoreboard: I mean this in the nicest possible way: You got a big freebie there at Love. The A380s will be mothballed before the rest of the industry recovers from the DFW/WA debacle. We all have to pay to play...another reason to raise fares maybe.

respectfully: flop

While I wouldn't call Love a freebie, you bet we took advantage of a great opportunity, all legal I might add, and I'm all about paying for playing.

Like I said, we don't control the fares, we just fly dem big round tubes...

Your right on wright, LAX does just fine with ONT and SNA. Chicago does fine with ORD/MDW. Why is it so hard to comprehend it wouldn't be the same at DFW without Wright? Delta didn't leave LAX nor ORD, they left DFW.

This will probably start another round. Oh well.