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To: RalphCramden who wrote (2177)6/10/2002 2:59:15 PM
From: Jeff Vayda  Read Replies (1) of 2737
 
Sorry Ralph, would have to disagree with your statement: The airlines on the other hand are mostly about marginal costs and very little about fixed costs...So with an airline, if nobody wants to go from Roanoke to Oshkosh at 8 AM, they cut their flight and save a large percentage of the total costs associated with running their business that could be attributed to having that flight.

Airlines are all fixed costs. They have to pay for the plane, and the flight crew, and the landing slots at the airports and even the food service contract (if they have them!) - whether the plane flies or not. About the only thing they save on is fuel costs.

If your 'little fixed costs' remark was true, airlines would have be running a surplus after 9/11.

Jeff Vayda
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