[thechat] Airlines

[Martin]

nate koechley wrote on 13/9/01 11:16 pm
> in my opinion, it's counter-productive 
>to say that the corporations didn't do these things because of the bottom 
>line. It's much more likely, to me, that they did (or didn't) do these 
>things because there wasn't demand for them.

Pretty much the same thing - if there is demand for a product at
$200, but not at $220 (and this is a significant price differential
in travel), then to increase costs by $20 will either kill the profit
margin, or kill demand.

>they will continue to make their standard profit margin (a hypothetical 10% 
>over costs). this will raise their costs, which will be passed on

As I say, costs can't simply be passed on if the customers aren't prepared
to pay them. Hopefully now, customers will be prepared to pay more for
a higher level of security.

Cheers
Martin

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