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Originally Posted by deadstick  OK, let's say the government steps in. Then what? Can they lower the price of oil to less than $100? If ReRegulation is the answer, then then will the $200 fare go up to $500? The $600 last minute ticket for a business trip will turn into a $2000 tickets? How many people will be traveling? What would that do to commerce? Or the travel/entertainment industry? Would Disney World close because the family of 5 cannot afford 5 $700 tickets? Would they drive? If they were in MN, would the parnets have to take 2 weeks off in order to go there? What would happen at the small company if all the employees started taking 2 weeks off? What if families only took vacations once every five years because they became too expensive? What would that reduction in $$ through our economy do to it?
I'm not looking for flames or smart-a$$ remarks. Just thinking about "big picture" repercussions of government involvement.
Personally, I think the prices should have been higher for quite some time. I agree that pay for crews has been squeezed to the breaking point, and that there is little control over fuel expenses. So what is left? Aircraft lease? No room there. Mx? No way in heck. So what is left? Admin overhead? CSRs/rampers? Sounds like a "synergy" -- a benefit of mergers. You can only reduce that support staff so far before you start interrupting operations, like a plane full of pax with no bags.
So, if the "-" items are minimized, the only thing to do is find a way to increase the "+" ones. Several have started this already by charging for extra bags and services. Will the legacies end up operating like Skybus? I doubt it. That is the extreme. With expenses cut to the bone or not controllable (fuel), then they have to find other ways of increasing the numbers in the revenue column.
I'm not an economist and I didn't stay in a HolidayInn Express last night, either. I'm just trying to hang on for the longest 8 seconds in this career. I'm just getting ready to be sore and bruised for the next few years.
Best of luck, all.
Chicken Little -- out. |
Like the Delta CEO alluded to this week....they will price the tickets to make money...it will be expensive to fly...tons of capacity goes away...hubs close...flying becomes a privilege for the elite, not a right given to everyone. I look for lots of change to the landscape.