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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: TimF who wrote (152412)	9/26/2002 7:36:47 PM
From: i-node	Respond to of 1573215

If they can't make money then the industry should undergo structural changes to make it profitable. Subsidies just delay that. The problem is it is a business that is just extremely capital AND labor intensive. They get very extreme about selling tickets that just barely cover variable costs (so they can fill up empty seats); the problem, of course, it that you're not going to make much money doing that. They basically need to cut way back on the number of flights so they fill them ALL up and run the prices up. I'm not sure why investors keep getting sucked into the airline business.

To: TimF who wrote (152412)	9/26/2002 11:47:17 PM
From: tejek	Read Replies (1) \| Respond to of 1573215

If they can't make money then the industry should undergo structural changes to make it profitable. Subsidies just delay that. Tim, its not just the airlines but rather the whole travel industry, particularly the portion dependent on airlines. Before 9/11, Seattle hotels were running around an 80 to 85% occupancy rate; since 9/11, the rate is around 60%. I've heard places like Hawaii and Las Vegas are having trouble as well although S. California has helped make up some of Las Vegas's losses. ted