View Single Post
Old March 20th, 2008, 13:39   #5
RightSeatGirl
Senior Member
 
RightSeatGirl's Avatar
 
Join Date: Dec 2007
Location: Forever in search of the perfect Beer!
Posts: 477
Send a message via Yahoo to RightSeatGirl
Default Re: The Airline Industry and your predictions

It's not an issue of demand. It's all about cost. If demand and cost increased at the same comparative rate, we have a mute issue. But when cost is increasing exponentially over demand we have an economic imbalance that can't be kept up with.

I'll simplify my point. If one passenger uses 1 gallon of jet A, you have a good one to one balance and you can price accordingly. But if for every passenger added, the cost of each gallon per passenger increases then you have a problem. So let's say every month you add one passenger, but every week, each gallon increases in cost by say 10%. Do you see where this is going?

That in a very simplified essence is what the industry is dealing with right now. So demand is pretty much irrelevant in light of the cost increase.
__________________
Having a very very hard time to find anything to give a crap about these days.....( only as far as Mexican Beer goes that is..)
RightSeatGirl is offline   Reply With Quote