February 8, 2006

NOTHING COSTS MORE THAN IT USED TO::

Why airfares stay so low - while airlines struggle (Alexandra Marks, 2/09/06, The Christian Science Monitor)

Oil prices might be hovering just below record highs, but it's still almost as cheap to fly as it is to take the bus. In fact, airfares are almost 20 percent lower than they were in 2000, even though jet fuel is more than twice as expensive. [...]

[F]liers - who are taking to the skies in record numbers - can thank something that could be called "the Southwest effect" for continued bargain-basement prices.


With that 20% drop it's no wonder the Fed is fighting inflation, eh?

Posted by Orrin Judd at February 8, 2006 6:09 PM
Comments

See? We'll get you on one of those wretched, time-zone-rule-breaking monsters yet, OJ.

Posted by: John Resnick at February 8, 2006 8:42 PM

Fares are low because the industry has intentionally supported excess capacity for several years now. That's also why some airports are operating above capacity and experience frequent delays. Not until the unions are crushed will the capacity be allowed to return to normal.

Posted by: Dave Cullen at February 8, 2006 9:53 PM

Though admittedly, for any over 6-foor-1 or 225 pounds or so, Southwest's costs savings do have their price on any flight longer than an hour.

Posted by: John at February 8, 2006 9:53 PM

John: You don't think he took a train to Florida, do you?

Posted by: David Cohen at February 8, 2006 11:12 PM

i thought he wagon-jacked an amish farmer to get down there.

Posted by: toe at February 9, 2006 12:01 AM

Toe,

Nice thought, but if he had surely we would have had a much, much longer time to sing the praises of the auto! :-)

Posted by: Kirk Parker at February 9, 2006 1:02 AM

David: Sure, either train or bus, right? Wait. I think I got it. If he doesn't violate the TZ rule, then taking the plane isn't hypocrisy.

Posted by: John Resnick at February 9, 2006 12:18 PM
« COME BACK, ADMIRAL POINDEXTER, ALL IS FORGIVEN: | Main | TEST CASE: »