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#21
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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". |
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