Note to airlines---- Gas prices have dropped way down feel free to stop charging us to check our bags and for snacks....

  • silverfox

    Posts: 3178

    Nov 26, 2008 2:48 PM GMT
    I thought the whole reason the airlines imposed these ridiculous fees were to offset skyrocketing gas prices.

    Yo airlines! Prices have dropped way down! Cut the crap.
  • Posted by a hidden member.
    Log in to view his profile

    Nov 26, 2008 3:16 PM GMT
    Airlines buy huge quantities of fuel from suppliers far in advance, partly to protect themselves against shortages, and also to try to buy when prices are low, not unlike the futures market. And of course international carriers buy fuel all over the world, where the drop may not be as great as we're seeing in the US.

    I'm sure they're buying fuel at these current low prices right now, but they have stockpiles of remaining fuel bought at the higher prices, too, whose cost they must cover.

  • Nov 26, 2008 7:14 PM GMT
    Yup Vespa has it right on the head...airlines buy fuel I think in 4 mo. chunks or something like that. So while prices might be falling at the pump now it'll take a bit longer to see that reflected in ticket prices for flights.
  • Posted by a hidden member.
    Log in to view his profile

    Nov 26, 2008 7:39 PM GMT
    Guys, keep in mind too that at some point, airfares must rise to match inflation. Their employees get cost of living increases. Leases at airports cost more each year. Beverage suppliers charge a little more for a case of soft drinks. Interest rates change on aircraft leases. Etc Etc.

    I have flown the exact same route (DEN-IAD) on the same carrier (UA) for over 10 years and I'm floored that I can still get the same fare I paid 10 years ago on the same route. (yes, yes, they have larger aircraft with more seats and charge more for premium seating and for snacks and for baggage, etc).

    I'm just surprised though that Americans have no issue paying more for a car than they did 10 years ago but have an issue when airfares go up.

    I guess, too, that I'm also surprised that people feel "offended" by a-la-carte pricing. I can pack a week's worth of what I need into my carry on which fits in the overhead and leaves room for 3-4 other bags. (Granted, I'm exempt from checked bag fees because I have elite status, but I've never checked more than one bag which we all get for n/c). If I'm not hungry, I opt not to purchase a snack.

    At a baseball game, you pay for access to the game. If you want a better seat, you pay a little more. If you want something to eat, you pay a little more. What's the difference, really?
  • Posted by a hidden member.
    Log in to view his profile

    Nov 26, 2008 7:39 PM GMT
    Due to many other economic issues airline travel has dropped considerably, so the airlines are probably going to hold onto some of those fees to make up the difference in revenue. They can't just raise the price of tickets (as they've done in the past) because people are already balking at spending that kind of money to travel, so they keep ticket prices lower (they've been dropping steadily over the last few weeks), but charge for all the "extras." It ends up costing the same to the consumer, but the consumer doesn't consciously realize it.

    I still think SWA rocks. They don't provide any special extra or meals (peanuts or cookies don't count), but nobody ever expected them to. Their airfares are inexpensive, but business travelers can buy the pricier tickets to ensure less stress about getting a good seat and such.
  • Posted by a hidden member.
    Log in to view his profile

    Nov 26, 2008 7:44 PM GMT
    This is why America needs Bullet Trains
  • Posted by a hidden member.
    Log in to view his profile

    Nov 26, 2008 8:09 PM GMT
    ...Or teleporters.
  • Posted by a hidden member.
    Log in to view his profile

    Nov 26, 2008 9:05 PM GMT
    TheIStrat saidThis is why America needs Bullet Trains


    Cali voted against them, even though a SF-LA-SD high speed service seems like a perfect solution. My personal belief is that too many people have too much $$$ tied up in airlines to allow anything that competes with them

    Sad but true.

    As long as customer service isn't part of efficency spending cuts I'm fine with it personally I'm liking Virgin America of late seems like they have the balance right
  • adventurejock

    Posts: 68

    Nov 27, 2008 12:53 AM GMT
    http://www.reuters.com/article/rbssAirlines/idUSN2039776920081120

    Obese have right to 2 airline seats in Canada...


  • Posted by a hidden member.
    Log in to view his profile

    Nov 27, 2008 4:57 AM GMT
    Airlines are full of perpetual crap. I particularly love it when the same flight 6hrs later suddenly increases by $300 and 5 dyas later drops in price.

    Sorry, I'm a little frustrated trying to buy a ticket back home from Sacramento.
  • CAtoFL

    Posts: 834

    Nov 27, 2008 5:04 AM GMT
    There's some merit to Silver's complaint. Royal Caribbean Cruise Lines has announced that it IS going to eliminate it's 'fuel surcharge' if oil prices remain under $65 a barrel.

    Here's hoping other cruise lines (and airlines) follow their example!!
  • Posted by a hidden member.
    Log in to view his profile

    Nov 27, 2008 5:40 AM GMT
    Japanese Bullet Train
    http://www.independent.co.uk/news/world/asia/japans-bullet-train-reaches-taiwan-at-a-cost-of-16377bn-430864.html

    15 Billion dollars, 215 miles.

    So to span from DC to LA... about 180 Billion.

    And oh so much imminent domain ....

    Hrmm but I guess if we give 700 billion to banks then 700 billion in bullet trains wouldnt be that bad.
  • Posted by a hidden member.
    Log in to view his profile

    Nov 27, 2008 5:42 AM GMT
    Price elasticity of demand is defined as the measure of responsivenesses in the quantity demanded for a commodity as a result of change in price of the same commodity. OPEC says its cutting production but I don't expect any drastic changes. i suspect cost of fuel will go up in the long term.
  • MSUBioNerd

    Posts: 1813

    Nov 27, 2008 5:51 AM GMT
    It's also important to keep in mind that the cost of gas and the cost of oil are not all that tightly linked. There are a lot of products made from oil, and gas is only a small percentage of it. Jet fuel is a different component, and the cost of jet fuel and the cost of gas for your car are going to sometimes move in different directions because of differing demand elasticities.
  • Posted by a hidden member.
    Log in to view his profile

    Nov 27, 2008 5:56 AM GMT
    Thank you for that.

    Jet fuel is a good example of a good that has inelastic characteristics in that people will pay anything for it (high or low prices with relatively equivalent quantity demanded), so it is not elastic. There's not that many substitutes for it. They know that they can keep prices high and consumers will still pay.
  • GQjock

    Posts: 11649

    Nov 27, 2008 11:05 AM GMT
    Has anyone noticed a huge increase in airfares?

    I had to buy some standard tkts from NY to FL and they've doubled over the last few months icon_eek.gif
  • Posted by a hidden member.
    Log in to view his profile

    Nov 27, 2008 11:16 AM GMT
    adventurejock saidhttp://www.reuters.com/article/rbssAirlines/idUSN2039776920081120

    Obese have right to 2 airline seats in Canada...




    Don't even get me started on that ruling. The day that somebody is morbidly obese is put in the same category as a disabled person is not a great day.

    Airlines are struggling to make money that is why their prices have not dropped much. Furthermore, they have significantly cut capacity due to the economic downturn and the high fuel prices in the summer. Although fewer consumers are flying this holiday season, the drop in available seats will likely mean demand on some flights will exceed supply causing high prices

    Due to its' size North America is not a good candidate for high speed trains except on a few major routes (unlike Europe or Japan which are much smaller in geographic area). Also the infrastructure for high speed trains is extremely expensive to build. There is a proposal for a high speed train link between Windsor and Quebec City in Canada, but they have talked about it for years. I wish they would just make up their minds and get down to it.
  • Posted by a hidden member.
    Log in to view his profile

    Nov 27, 2008 11:39 AM GMT
    crownroyal117 saidJapanese Bullet Train
    http://www.independent.co.uk/news/world/asia/japans-bullet-train-reaches-taiwan-at-a-cost-of-16377bn-430864.html

    15 Billion dollars, 215 miles.

    So to span from DC to LA... about 180 Billion.

    And oh so much imminent domain ....

    Hrmm but I guess if we give 700 billion to banks then 700 billion in bullet trains wouldnt be that bad.


    So I guess dem bullet trains won't be a reality then
  • Posted by a hidden member.
    Log in to view his profile

    Nov 27, 2008 12:11 PM GMT
    Qantas in Australia today announced a reduction in its fuel surcharge (the surcharge still exists though).
  • boilerup_82

    Posts: 188

    Nov 27, 2008 12:24 PM GMT
    AMT87 said
    TheIStrat saidThis is why America needs Bullet Trains


    Cali voted against them, even though a SF-LA-SD high speed service seems like a perfect solution. My personal belief is that too many people have too much $$$ tied up in airlines to allow anything that competes with them

    Sad but true.

    As long as customer service isn't part of efficency spending cuts I'm fine with it personally I'm liking Virgin America of late seems like they have the balance right



    I thought prop 1A passed resulting in future funding for a CA high speed rail network.

    http://vote.sos.ca.gov/Returns/props/map19000000001A.htm




  • stevarino7

    Posts: 149

    Nov 27, 2008 1:54 PM GMT
    I read a news article awhile back that said free checking of bags and treats on the plane are a thing of the past. Airlines needed an excuse to start it and now they have, so they won' t take it back. I also saw a statistic, and I don't have the article any more so don't shoot me for not citing, that said businesses were not losing customers over the fees. Meaning the airline companies that still were not charging (I think Delta may have been on that wasn't), was not having an increase in business and the ones charging were not having a decrease. The article was on msn.com, I just can't find it now.
  • Mikeylikesit

    Posts: 1021

    Nov 27, 2008 2:22 PM GMT
    Well.........ITs not much differant then the costs of all Consumer goods. Food , clothing .ect....I have NOT seem prices come down, Even though gas is like half the price of what it was. i know once retails raise prices they probaly dont come down again!.....We screwed......icon_eek.gif