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Oil prices are going down. So why do airfares keep climbing?
U.S. airlines are saving tens of millions of dollars every week because of lower prices for jet fuel, their largest expense. So why don't they share some of the savings with passengers? (www.stltoday.com) More...Planes keep flying because people want to go and air travel is the accepted norm to get there to any distance. Schedules and delays being what they are now in in years past, make a good case for corporate planes or charters if companies can afford them. There are many companies around that have corporate flight departments that are legitimate rather than personal toys of the CEO as was touted last year, in which Senior pilots work hand in hand with the CEO, doing what they can to fill the need the company has scheduling wise. This puts folks where they need to be, when they need to be there, and the CEO out of the logbook.
Supply and Demand
Airlines have merged (less competition), consolidated routes and fleet types (supply went down). The demand for air travel has remained the same. Prices go up! Basic economics folks!
Airlines have merged (less competition), consolidated routes and fleet types (supply went down). The demand for air travel has remained the same. Prices go up! Basic economics folks!
Sad but true.
Its right back to where it was before deregulation.
Back then the major carriers, Pan Am, American, United, TWA, Delta, Northwest Orient all had protected routes and fares were controlled by federal regulators. This kept fares higher than most people could afford. Carrier managers could not care less. Their routes could not be infringed upon by other carriers.
Back then there were these small regional carriers which did not compete with the major carriers.
The only difference now is the small regional carriers are subsidiaries of the larger ones. Asd there are fewer of them.
The CEO of US Airways ( Douglas Parker) said consolidation is the only way the airline industry could survive. He also made a reference to there being too many competing airlines.
Back then the major carriers, Pan Am, American, United, TWA, Delta, Northwest Orient all had protected routes and fares were controlled by federal regulators. This kept fares higher than most people could afford. Carrier managers could not care less. Their routes could not be infringed upon by other carriers.
Back then there were these small regional carriers which did not compete with the major carriers.
The only difference now is the small regional carriers are subsidiaries of the larger ones. Asd there are fewer of them.
The CEO of US Airways ( Douglas Parker) said consolidation is the only way the airline industry could survive. He also made a reference to there being too many competing airlines.
Because they can. And for the first time in many years, for some, decades, air carriers are profitable
One by one carriers merged, reorganized, gobbled up each other, reduced awards for frequent flyers, got rid of perks, reined in labor costs, reduced the number of flights, got rid of older less efficient aircraft, learned to turn over aircraft much quicker, etc.
For example AA issued a dividend to its stock holders for the first time in 34 years.
Who likes paying high fares, security hassles, baggage fees, fee fees( yes airlines charge you for charging you) So what? It's not the only way to get around.
I don't fly anymore because as in the past I used air travel on the logic of paying extra for the convenience. Flying is no longer convenient
One by one carriers merged, reorganized, gobbled up each other, reduced awards for frequent flyers, got rid of perks, reined in labor costs, reduced the number of flights, got rid of older less efficient aircraft, learned to turn over aircraft much quicker, etc.
For example AA issued a dividend to its stock holders for the first time in 34 years.
Who likes paying high fares, security hassles, baggage fees, fee fees( yes airlines charge you for charging you) So what? It's not the only way to get around.
I don't fly anymore because as in the past I used air travel on the logic of paying extra for the convenience. Flying is no longer convenient
[This poster has been suspended.]