4/15/2005

Gas prices and issues the airlines are already dealing with

Gas prices are affecting consumers at the pump in more than one way. The airlines are another often used form of transportation that consumers are going to be seeing a difference in price. Of course these pressures are also affecting the airlines in other ways. The airlines having been battling with bankruptcy, pressures from employees, and cost, the gas prices are only making these dilemmas harder to deal with. In the article, a lot of employees are fighting with the airlines about higher paid executives not taking pay cuts. Gas prices are going to make the fight for survival in this industry all the more challenging. Do you think the rise in prices will detour you from taking any future flights.



Actually totally random question, but was the airplane food ever a factor- It ceases to amaze me that people complain about not getting a meal on the plane. Why would people want the airplane food? I’m sorry, I just always wanted to know that.

2 comments:

Rex said...

I think a question like this was brought up in class. The airlines are going to raise their prices. This we can be sure of. The only thing is they will not all stick to the higher price. One will offer discounted flights to one place or another and then raise the price again. The next week their competitor will play the same game only to a different location.

I do not see the increase in tickets altering my travel plans this summer because I have no travel plans. I will be in another round of summer school!

Dr. Tufte said...

Frankly, the problems for the airlines as an industry would be solved if some of the firms were allowed to go out of business.

What we are seeing here is a very strong signal that free exit needs to take place. The problem is that there is a "too big to fail" mentality about airlines. Until that changes this industry will not be anything more than a basket case.