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This is Just Nuts



 
 
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  #21  
Old January 11th, 2005, 11:15 PM
nobody
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Mike Schumann wrote:
So far, only Delta has had the brains and courage to realize that they need
to get real or die. Whether or not this revelation came in time to keep
them alive remains to be seen.


They all know it needs to be done. But none of them have the means and/or guts
to go ahead with this.

When you have huge obligation, debts, it is a lot more difficult to take a
leap of faith, dramatically reduce fares and hope that the increase in
passenger numbers will make up for a reduced yield.

When Delta has implemneted those new fares, the important megric will be the
afera gfare paid by passengers for domestic travel. And that is probably a
number you may not see.

When Air Canada took over Canadian, it promised not to raise fares and it
didn't actually raise published fares, but by playing with yield management,
it raised the average fare paid by passengers.

One problem with legacy carriers is their fleet. There is no big incentive to
streamline the schedule if they can't return the now surplus planes to
lessors. So the only incentive comes from increased demand that results in the
legacy carriers slowly restructuring their schedules to free up aircraft,
instead of buying new aircraft.
  #22  
Old January 13th, 2005, 01:36 AM
Joseph Meehan
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Scott en Aztlán wrote:
On Tue, 11 Jan 2005 17:50:29 GMT, "Joseph Meehan"
wrote:

Call me naive, just makes no sense at all to me.


Such is life. The airlines don't even understand it.


This makes almost as much sense as flagging passengers flying on
one-way tickets for extra-deep probing at the security checkpoints.

Gee, I guess the only solution is to never fly on a one-way ticket
ever again! Not only will I save money, I'll avoid getting the wand
shoved up my ass by the TSA!!


Next week the round trip will be cheaper. :-)

--
Joseph Meehan

26 + 6 = 1 It's Irish Math


  #23  
Old January 13th, 2005, 03:46 PM
js
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Scott - Note this from the article:

"One reason is that advanced purchase roundtrip fares come with so many
restrictions....The one-way fare, on the other hand, is completely
unrestricted."

The two tickets are not the same and as such they are not the same
price. If you buy a fully refundable/changeable roundtrip it will cost
you exactly twice the one-way fare. The difference in price is based
on a difference in the product and its relative value.

You can buy a 2-liter bottle of Coke for $0.79 or a 12 oz can from a
vending machine for $1.25.

The can is convenient, easy to drink and cold - for that you pay extra.
A one way ticket is convenient, easy to use, and flexible - for that
you pay extra.
What is it you are having a problem understanding?

js

  #24  
Old January 13th, 2005, 03:46 PM
js
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Scott - Note this from the article:

"One reason is that advanced purchase roundtrip fares come with so many
restrictions....The one-way fare, on the other hand, is completely
unrestricted."

The two tickets are not the same and as such they are not the same
price. If you buy a fully refundable/changeable roundtrip it will cost
you exactly twice the one-way fare. The difference in price is based
on a difference in the product and its relative value.

You can buy a 2-liter bottle of Coke for $0.79 or a 12 oz can from a
vending machine for $1.25.

The can is convenient, easy to drink and cold - for that you pay extra.
A one way ticket is convenient, easy to use, and flexible - for that
you pay extra.
What is it you are having a problem understanding?

js

  #25  
Old January 13th, 2005, 04:50 PM
Dennis G. Rears
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"Scott en Aztlán" wrote in message
...
On Tue, 11 Jan 2005 11:44:29 -0500,
wrote:

Call me naive, just makes no sense at all to me.


You need to travel more, and take a course in economics (Capitalism).


The economics I'm familiar with suggests that things which cost less
to produce should be sold for lower prices.


Your economics never mentioned supply and demand? That has more to do with
prices than costs.

dennis


  #26  
Old January 13th, 2005, 04:50 PM
Dennis G. Rears
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"Scott en Aztlán" wrote in message
...
On Tue, 11 Jan 2005 11:44:29 -0500,
wrote:

Call me naive, just makes no sense at all to me.


You need to travel more, and take a course in economics (Capitalism).


The economics I'm familiar with suggests that things which cost less
to produce should be sold for lower prices.


Your economics never mentioned supply and demand? That has more to do with
prices than costs.

dennis


  #27  
Old January 13th, 2005, 05:46 PM
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Dennis G. Rears wrote:
"Scott en Aztl=E1n" wrote in message
...
On Tue, 11 Jan 2005 11:44:29 -0500,


wrote:

Call me naive, just makes no sense at all to me.

You need to travel more, and take a course in economics

(Capitalism).

The economics I'm familiar with suggests that things which cost

less
to produce should be sold for lower prices.


Your economics never mentioned supply and demand? That has more to

do with
prices than costs.



"What the market will bear" drives the cost of the vast majority
of products I buy.

  #28  
Old January 13th, 2005, 05:46 PM
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Dennis G. Rears wrote:
"Scott en Aztl=E1n" wrote in message
...
On Tue, 11 Jan 2005 11:44:29 -0500,


wrote:

Call me naive, just makes no sense at all to me.

You need to travel more, and take a course in economics

(Capitalism).

The economics I'm familiar with suggests that things which cost

less
to produce should be sold for lower prices.


Your economics never mentioned supply and demand? That has more to

do with
prices than costs.



"What the market will bear" drives the cost of the vast majority
of products I buy.

  #29  
Old January 13th, 2005, 06:42 PM
Dennis G. Rears
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"Scott en Aztlán" wrote in message
...
On Thu, 13 Jan 2005 15:50:01 GMT, "Dennis G. Rears"
wrote:

Call me naive, just makes no sense at all to me.

You need to travel more, and take a course in economics (Capitalism).

The economics I'm familiar with suggests that things which cost less
to produce should be sold for lower prices.


Your economics never mentioned supply and demand?


So you're suggesting that demand is higher for one-way tickets?


No, I was making a point about "the economics that you are familiar with".


  #30  
Old January 13th, 2005, 06:42 PM
Dennis G. Rears
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Posts: n/a
Default


"Scott en Aztlán" wrote in message
...
On Thu, 13 Jan 2005 15:50:01 GMT, "Dennis G. Rears"
wrote:

Call me naive, just makes no sense at all to me.

You need to travel more, and take a course in economics (Capitalism).

The economics I'm familiar with suggests that things which cost less
to produce should be sold for lower prices.


Your economics never mentioned supply and demand?


So you're suggesting that demand is higher for one-way tickets?


No, I was making a point about "the economics that you are familiar with".


 




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