Delta's prices reach the sky

[shafke]

I beg to differ! If airlines wern't making money in the long run, whats the point of even staying in business?

Some of then won't be staying in business. Eastern, Pan Am, TWA are all gone. US Air went chapter 11 for a 2nd time last Sept. Delta has been on the brink of chapter 11 for a while.

 

[CarolA]

The sad part is that they aren't going away but you and I are holding the bag. United just defaulted on it's pension. The goverment is now administering it... where do you think that money comes from.

All of the majors have large loans given after 9/11 guranteed by the goverment....

Brian is right, they won't let them go out of business so we keep paying.

At some point you have to quit selling tickets at a loss... yes you may wind up half the size you are now, but at least it would be profitable.

 

[DisFlan]

It isn't a matter of opinion: It's a matter of fact that many majors are losing money year after year.

A billion here, a billion there...and pretty soon, we're talking real money.

I don't know why anyone would buy airline stock, except maybe as a write-off.


DisFlan

 

[Disneyjosh229]

I don't know why anyone would buy airline stock, except maybe as a write-off.


DisFlan

Why would anyone invest in stock right now?!

 

[AllyBri]

Hmm..I just bought great tickets a few days ago on Delta. There were lots of other great prices for different dates throughout the year, including as as soon as next month. I just checked again last night and they are back to regular prices. But I didn't notice any super changes in price.

Could you tell what some of these prices were?
Thank you.

 

[Miss Jasmine]

I beg to differ! If airlines wern't making money in the long run, whats the point of even staying in business?

Most of the legacy carriers are LOSING money, and they need to change their business plans. They need to quit trying to compete with the low fare carriers. There are only so many seats on those airlins, if people want the convenience they will pay the price. Maybe they should consolidate some of their routes, etc.

 

[bicker]

I don't know why anyone would buy airline stock, except maybe as a write-off.

Why would anyone invest in stock right now?!

I've made a mint over the last couple of years on Caterpiller.

(Or did I misunderstand your question...)

 

[bicker]

Most of the legacy carriers are LOSING money, and they need to change their business plans. They need to quit trying to compete with the low fare carriers. There are only so many seats on those airlins, if people want the convenience they will pay the price. Maybe they should consolidate some of their routes, etc.

It's not really as easy as all that. Those that haven't been given the Get Out of Jail Free card by a judge have obligations, to unions and creditors, that they cannot legally walk away from. If they don't compete with the low-fare carriers, there really isn't much of a market to sell to at all: Even business travelers are now insisting (or rather, the company travel departments are insisting, on the business travelers' behalf) on low fares, often to the exclusion of all other considerations. There just isn't a big enough market for high-fare airlines for even one airline to compete in that market.

 

[Miss Jasmine]

It's not really as easy as all that. Those that haven't been given the Get Out of Jail Free card by a judge have obligations, to unions and creditors, that they cannot legally walk away from. If they don't compete with the low-fare carriers, there really isn't much of a market to sell to at all: Even business travelers are now insisting (or rather, the company travel departments are insisting, on the business travelers' behalf) on low fares, often to the exclusion of all other considerations. There just isn't a big enough market for high-fare airlines for even one airline to compete in that market.

Yes please excuse me for my moment of forgetting logic. LOL It just gets to me the underpricing going on, the continual losing of money, etc.

 

[bicker]

Indeed, and underpricing fostered, obstensibly, on the backs of the American taxpayer, when the company cannot afford to live up to its pension commitments.

 

[DisFlan]

Why would anyone invest in stock right now?!

Good point. I'm not a "stock picker", so I don't go there.

DisFlan

 

[Wish I lived in Fl]

Indeed, and underpricing fostered, obstensibly, on the backs of the American taxpayer, when the company cannot afford to live up to its pension commitments.

But the American taxpayer is also the one benefitting now from the low ticket prices.

 

[Disneyjosh229]

It's not really as easy as all that. Those that haven't been given the Get Out of Jail Free card by a judge have obligations, to unions and creditors, that they cannot legally walk away from. If they don't compete with the low-fare carriers, there really isn't much of a market to sell to at all: Even business travelers are now insisting (or rather, the company travel departments are insisting, on the business travelers' behalf) on low fares, often to the exclusion of all other considerations. There just isn't a big enough market for high-fare airlines for even one airline to compete in that market.

You hit it on the head. If the airlines hadn't been "given" another chance (by who else? that good ole' government), they WOULD be out of business! How hard can it be to make money when you don't have to pay your bills, you can pi*s on your employee's and you have the american government behind your back!?

 

[bicker]

But the American taxpayer is also the one benefitting now from the low ticket prices.

No. The American airline passenger is benefitting, not the American taxpayer. BIG difference. All Americans don't fly the same amount. Some Americans don't fly at all.

 

[Miss Jasmine]

Indeed, and underpricing fostered, obstensibly, on the backs of the American taxpayer, when the company cannot afford to live up to its pension commitments.

How very true.