Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Sharks in the Septic Tank -- Ignore unavailable to you. Want to Upgrade?

To: Tom Clarke who wrote (28916)	9/22/2001 10:06:41 AM
From: Michael M	Respond to of 82486

That's a $5 billion dollar deal that will net the airlines somewhere between $6 and $35 billion. At the bottom end you have to add in all the $100 fees for name and schedule changes on the individual tickets. Does anyone think that's a little exorbitant, BTW? On the high end (which the airlines will convince the govt it needs) the govt will be buying the more flexible full fare biz travel tickets that routinely cost seven times as much as those cheapies. What recourse will the govt have if they send a guy to a one day conference on Tuesday - surely they don't want to give him up for three extra work days and pay his way at the Hyatt until Sunday morning. Paying $1,500 for a ticket otherwise available for $300 starts to look like a real bargain. NOT! If the $5 billion is a hard cap then the govt will get only about $1 billion worth of actual travel. Frankly, as a taxpayer, I'm willing to absorb the loss of revs on the days the govt shut down the system. I'm also willing to absorb the cost of security but not with general tax funds - slap a security surcharge on every single ticket. The airlines need a new business plan. The ones they have were awful and will not work in the new environment. Business travel was down and going downer when all this happened. Reason - the carriers overplucked the golden goose so it could sell lots of really cheap seats. The cheap seat people (except for the well-off) are not going to fly nearly as much if they have to pay something near the actual seat-mile cost. The airlines need to cut workforces (way more than 20 percent) and park a bunch of planes in the desert. Failure to do so will have them back asking for mo' money real soon. Unless they can figure a way to pay their bills with "miles".