The cost of airfare

[BFG]

...at least somebody's trying to do something about it.

 

fly derrie-air

[Dave McReynolds]

Appreciating that it's a spoof, the basic idea makes sense to me: why not charge based on the combined weight of yourself and your baggage? Isn't it basically weight that determines fuel consumption, and the high cost of fuel that is causing the current airline problems? Of course, all the airlines would have to do it, or you would just have all the skinny people without baggage flying on the ones that did, and all the fat people with baggage flying on the others.

[bakerzdosen]

Ah the power of advertising...

[leikam]

I've always wanted to be treated like freight by the airlines... oh wait!

[Ken H.]

Appreciating that it's a spoof, the basic idea makes sense to me: why not charge based on the combined weight of yourself and your baggage? Isn't it basically weight that determines fuel consumption, and the high cost of fuel that is causing the current airline problems?

It depends upon the size of aircraft of course, but for the stereotypical airliner, the weight of what is actually needing to be moved, i.e. - people and their luggage, I believe has very little to do with the cost of the flight. They are just to small of a percentage of the total weight of the aircraft and it's fuel to make a significant difference.

 

The latest move to charge checked baggage and such is an attempt to generate revenue to offset other cost increases (most notability fuel), not an attempt to reconcile the cost of moving the actual baggage for example.

[velomoto]

LOL - yeah the mass media keeps hinting at this but I just can't see how it would happen. Would there be some sort of base fare for kids, say 50# or less and then a surcharge for each additional pound?

 

With several of the airlines teetering on bankruptcy it'll be interesting to see how all this gets sorted out. If nothing else, this may be an opportunity for carriers to file Chapter 11 and get some sort of concessions from unions, creditors or the government.

 

Anyone else notice that the dire warnings of over crowding in the skies and lack "modern" air traffic controller equipment has disappeared from the radar screen so to speak? Guess with all the flights being eliminated this is a problem of the past!

[Dave McReynolds]

As a CPA, I'm embarrased to admit this, but I don't understand the economics of the airlines' plight.

 

For example, whenever oil prices rise, we see immediate price increases at the gas pump, even before the cheaper gas already in the tanks is replaced by more expensive gas.

 

The airlines, even though deregulated, seem unable to increase prices to offset their increased fuel costs. Why?

[BFish]

As a CPA, I'm embarrased to admit this, but I don't understand the economics of the airlines' plight.

 

For example, whenever oil prices rise, we see immediate price increases at the gas pump, even before the cheaper gas already in the tanks is replaced by more expensive gas.

 

The airlines, even though deregulated, seem unable to increase prices to offset their increased fuel costs. Why?

 

petroleum hedges and fear of not having the competiion raise prices as well.

[smiller]

The airlines, even though deregulated, seem unable to increase prices to offset their increased fuel costs. Why?

They have been raising fares, by quite a bit. But inertia and the rate of fuel price increases seems to keep them off balance and behind the curve. Plus they have to compete with airlines like Southwest who locked-in fuel contracts at lower prices last year.

[chrisolson]

As a CPA, I'm embarrased to admit this, but I don't understand the economics of the airlines' plight.

 

For example, whenever oil prices rise, we see immediate price increases at the gas pump, even before the cheaper gas already in the tanks is replaced by more expensive gas.

 

The airlines, even though deregulated, seem unable to increase prices to offset their increased fuel costs. Why?

 

petroleum hedges and fear of not having the competiion raise prices as well.

I understand the first, but in today's out of control prices if you're loosing money flying people, what difference if you loose money not flying people assuming that the competition keeps prices low. If the competition doesn't raise prices it will be gone soon since fuel isn't going to come down anytime soon which will mean increased profit for those left.

[Lets_Play_Two]

As a CPA, I'm embarrased to admit this, but I don't understand the economics of the airlines' plight.

 

For example, whenever oil prices rise, we see immediate price increases at the gas pump, even before the cheaper gas already in the tanks is replaced by more expensive gas.

 

The airlines, even though deregulated, seem unable to increase prices to offset their increased fuel costs. Why?

 

petroleum hedges and fear of not having the competiion raise prices as well.

I understand the first, but in today's out of control prices if you're loosing money flying people, what difference if you loose money not flying people assuming that the competition keeps prices low. If the competition doesn't raise prices it will be gone soon since fuel isn't going to come down anytime soon which will mean increased profit for those left.

 

As long as on the margin they are contributing to their huge fixed costs, it continues to be beneficial to operate flights. The trick is picking the flights that contribute the most and dumping low capacity flights.

[Paul Mihalka]

Airfares have increased. Maria and I are planning a September together vacation. I checked Southwest's "senior" price to our destination two weeks ago and it was $159. I checked today and it is $179. That is a 12.5% increase. I bought the tickets today to lock it in.