tag:blogger.com,1999:blog-10424035.post1740111365266276234..comments2023-09-11T08:58:24.710-06:00Comments on Reach Upward: Weight In the AirScott Hinrichshttp://www.blogger.com/profile/11831447472339880148noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-10424035.post-42688627778825798452008-07-02T17:20:00.000-06:002008-07-02T17:20:00.000-06:00A large number of people have made a decent living...A large number of people have made a decent living providing air travel.<BR/><BR/>As for the question of profits, I've come to the realization that the stock market is not about making profits. It is about finding mechanisms for setting prices.<BR/><BR/>The stock for companies in a mature market can't rise faster than the economy as a whole because their market is fixed.<BR/><BR/>I've come to realize that one of the problems in our economy is that we place an untenable demand on companies that they always make a profit. <BR/><BR/>The untenable demand for profits creates a situation where a contracting market creates more hardship than need be.<BR/><BR/>Airlines are clamoring for regulation at the moment because the politically connected airline executives hope that an artificial market will allow them to see growing profits while the market shrinks.<BR/><BR/>What is needed is a way to let the different segments of the market expand and contract as the economy evolves.<BR/><BR/>The free market does this on its own. We have an energy crisis. Prices will rise and airlines will cut back on flights, and with luck the polar bears will be able to swim to the sea ice.y-intercepthttps://www.blogger.com/profile/03389285761013186443noreply@blogger.comtag:blogger.com,1999:blog-10424035.post-52016212889845192792008-07-02T16:49:00.000-06:002008-07-02T16:49:00.000-06:00I'm not advocating price fixing. I'm merely sayin...I'm not advocating price fixing. I'm merely saying that such a model apparently works in the ocean shipping industry. Even if such a model were followed, it should be by private agreements rather than by government rule.<BR/><BR/>Y-intercept makes a very good point about the fact that air travel was far more rare (and more dangerous) in the days before deregulation. But since deregulation, airlines have had a difficult time consistently turning a profit. Have they even broken even over that time period?<BR/><BR/>One economist I read suggested that the problem is laws restricting U.S. airlines from partnering with foreign based airlines. The result is limited competition that fails to adequately serve stakeholders.Scott Hinrichshttps://www.blogger.com/profile/11831447472339880148noreply@blogger.comtag:blogger.com,1999:blog-10424035.post-14884808996514055612008-07-02T15:02:00.000-06:002008-07-02T15:02:00.000-06:00With oil prices as high as they are, the air indus...With oil prices as high as they are, the air industry is really sweating right now. Many carriers have already gone bankrupt, and with all the additional fees being charged travel will continue to dwindle.<BR/><BR/>Besides, flying is bad for the planet.Cameronhttps://www.blogger.com/profile/06016275707476655364noreply@blogger.comtag:blogger.com,1999:blog-10424035.post-15324967867900001542008-07-02T10:09:00.000-06:002008-07-02T10:09:00.000-06:00I like the fact that airlines are innovating in or...I like the fact that airlines are innovating in order to "stay afloat". Charging by body weight does seem at first like an odd suggestion, but I think that airlines should be able to use whatever pricing structure they choose.<BR/><BR/>It would be interesting to see if the effect of such a policy would be that all the skinny people fly on that/those airline(s) that have a body weight-related pricing structure. <BR/><BR/>At any rate, something's gotta change. I certainly don't like flying these days, but I have to a few times per year (related to my employment).Frank Stahelihttps://www.blogger.com/profile/01822334061980912687noreply@blogger.comtag:blogger.com,1999:blog-10424035.post-20809079208074050102008-07-02T00:32:00.000-06:002008-07-02T00:32:00.000-06:00I am surprised to see you writing a blog entry wit...I am surprised to see you writing a blog entry without any research. Democracy Lover may have finally achieved his goal of addling your brain.<BR/><BR/>Anyway, we had price fixing in the airlines industry. Just prior to deregulation surveys showed that only half of the adult American population had flown on an airline. <BR/><BR/>Deregulation caused prices to plummet and airfare came within the reach of the common man. The problems since deregulation have been of the form of so many people traveling that they keep trammeling the infrastructure to pieces. <BR/><BR/>Even after the air industry adjusts to higher fuel costs, there will be substantially more people flying today than in the grand regulated years. Flying will still be safer.<BR/><BR/>Contrary to what you say, I think the people in the air industry have fun doing what they do. Their main problem is the rush of people.<BR/><BR/>I've been trying to build data through <A HREF="http://www.bts.gov/press_releases/airline_traffic_data.html" REL="nofollow">BTS</A> , but it appears that they only have a decade of data. The standard speil about deregulation is that before deregulation only 50% of the adult US population had been on a commercial air plane prior to deregulation. The first time I flew came after deregulation.y-intercepthttps://www.blogger.com/profile/03389285761013186443noreply@blogger.com