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To: Jeff Vayda who wrote (2182)	6/10/2002 3:19:14 PM
From: RalphCramden	Respond to of 2737

Hi Jeff, I modified my post quite a bit so the things you are responding to are no longer in it. So if you are wondering what Jeff is replying to, it really is stuff I published for a few minutes. I may be wrong to say airlines are mostly about marginal costs, but they are certainly a lot more about marginal costs than is a telecom company. On the time-scale on which they can cancel a scheduled flight, jet fuel, maintenance on the jet, meals, etc. They save salary to the extent that they can move their employees to lower end of contractually required hours-per-month of utilization. For jets which they lease (does any carrier by jets any more?) I feel very confident that their lease has more "per mile" (or really per engine hour) cost in it than "per day" cost in it. I think that the less profitable airlines wind up eating it because of high fixed costs, by comparison to more profitable airlines. But compared to telecom industry, marginal costs are a very much bigger part of the airline picture.