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Technology Stocks : IFLY - travel sales on the web pure play -- Ignore unavailable to you. Want to Upgrade?

To: Bill Anderson who wrote (1073)	5/8/1998 1:45:00 PM
From: LAWRENCE C.	Read Replies (3) \| Respond to of 4761

Bill, I believe that our joint analysis can be stronger than that of any one individual. First IFLY and other companies wouldn't be getting into the airline internet transactions unless they expect at least in the long run to make money. Details are important. Maybe to some they would be boring but to others it might prove helpful. We are all making assumptions and guesstimates of how profitable we think IFLY will be in both it's 800 business and with the additional potential internet revenues of a better internet site. My points are that we don't know much about the magnitude of profit per internet transaction or the profit equation for the potential internet business. One potential cost would be the cost of acquiring eyeballs on search engines or other popular internet sites. Or the impact of not being able to get eyeballs because of exculsive contracts with a competitor. What are some possible profit models for IFLY's airline ticket business? Yes a few million dollars (net) would have a tremendous impact on their bottom line. So what are guesstimates of the cost and profit curves? Initially you would have the setup costs of developing a better internet sit. You also need to get potential customers to your site. How much would these links from other sites cost per month or year if they aren't already exclusive? Lucky Lawrence