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isitsafenow
Topic Author
Posts: 3413
Joined: Sun Feb 01, 2004 9:22 am

No Wonder They Lose Money

Wed Sep 01, 2004 11:28 am

I have this collection of OAG's and in the 60's and 70's versions, they also list fares.
In 1962 the jet coach fare from ILD(JFK) to LAX on UA, AA or TW is $290.90 Round trip all fees included.

In 2004 the jet coach fare from JFK to LAX on AW is $222.70. On UA, its$352.00
and on AA its $310.00 All above is NS service
source....ORBITZ
What wrong with this picture?
safe
If two people agree on EVERYTHING, then one isn't necessary.
 
SafetyDude
Posts: 3654
Joined: Fri Sep 07, 2001 10:02 am

RE: No Wonder They Lose Money

Wed Sep 01, 2004 11:31 am

-Value of the dollar
-Aircraft efficiency
-Airtravel more common
-A difference in taxes and fees

Do keep in mind that fares vary by the day, and hour.  Big grin

-Will
"She Flew For What We Stand For"
 
desertjets
Posts: 7693
Joined: Fri Feb 18, 2000 3:12 pm

RE: No Wonder They Lose Money

Wed Sep 01, 2004 11:40 am

All things being equal I would saw there is a problem.

BUT, and this is a big one... you are comparing apples to oranges. For any of those flights there is probably a half dozen different coach fares available. From the very cheap $250 range that you saw on Orbitz to last minute, to fully refendable tickets that will be well over a thousand dollars.
Stop drop and roll will not save you in hell. --- seen on a church marque in rural Virginia
 
Matt D
Posts: 8907
Joined: Fri Nov 19, 1999 6:00 am

RE: No Wonder They Lose Money

Wed Sep 01, 2004 11:44 am

Not to mention the wonderful subsidies paid to the airlines (and fixed, guaranteed prices) enjoyed under Regulation.
 
nearord
Posts: 184
Joined: Thu Jun 17, 2004 11:16 am

RE: No Wonder They Lose Money

Wed Sep 01, 2004 11:52 am

Using one of the many inflation calculators available on the web, one comes up with around $1775 in todays dollars for 290 in 1962. or the 350 today comes to about 57 back then. Funny, seems they are going the wrong way. somehow 1775 becomes 57.

[Edited 2004-09-01 04:52:54]
 
Tasha
Posts: 537
Joined: Fri Jun 04, 2004 2:34 pm

RE: No Wonder They Lose Money

Wed Sep 01, 2004 11:58 am

What is not being said, is the sheer quantity of flights available today say JFK-LAX. In the 1960's you had one or two, and that's that. I guess because of the high price of travel. I cannot imagine that rail travel was any cheaper back then either.

On a completely different note... Has anyone tried out the remodeled Hilton near ATL? I'm there right now. Beautiful room; had a lovely dinner; and they have high-speed (3mps) internet connections in every room.

Tasha  Smile/happy/getting dizzy
 
isitsafenow
Topic Author
Posts: 3413
Joined: Sun Feb 01, 2004 9:22 am

RE: No Wonder They Lose Money

Wed Sep 01, 2004 12:01 pm

I forgot to fill you in on "the past". There was four fares back then and I did NOT give you the lowest in 1962. Today I believe there are around 75 between NYC and LAX. On the above post, you got the Y jet coach labeled R fare at that time. Y was prop coach in 1962.... And YOU GOT YOUR $$$ back. There was no "they keep it and you get a penalty" if you xcle or change. There was no Saturday night stay crud. But there was an excursion fare you would buy 14 days in advance. THAT was the lowest on any route.
The fares are not in proportion to everything else bought in 1962. Cars, food, entertainment, clothes, cigarettes, gas..you name it.
How bout wages? I think the average ramp rat made around a buck fifty an hour back then. What do they make now?
That's the point I am trying to get across.
comments please..
safe
If two people agree on EVERYTHING, then one isn't necessary.
 
lowrider
Posts: 2542
Joined: Wed Jun 30, 2004 3:09 am

RE: No Wonder They Lose Money

Wed Sep 01, 2004 12:08 pm

The point is, if they have to charge $10 per ticketmore to cover fuel, its not that big a deal and you are not getting screwed. Cope.
Proud OOTSK member
 
txagkuwait
Posts: 1388
Joined: Fri Aug 27, 1999 7:39 am

RE: No Wonder They Lose Money

Wed Sep 01, 2004 12:10 pm

If you convert 1962 dollars to 2003 dollars, $ 290.90 in 1962 has the same value as $ 1709.82 in 2003.

Now, let's say that the CAB still exists in 2003 and has allowed regulated airlines to set the fare at $ 854.91 each way.

What do you think would happen to demand?

Nowhere near as many people would fly.

If a lot of people didn't fly, there would be a whole lot of people currently employed by airlines that would be working in other industries. A lot of planes cranked out by Boeing over the years would never have been ordered, eliminating the need for a lot of aerospace workers.

Many years ago, then-President Reagan made the comment that the deficit was not the result of the government not taking in enough in taxes, but rather because the government spent too much. (I'm paraphrasing). I think you could say the same thing about airlines...the ones in financial straits are there not because they don't charge enough, but because their costs are too high.
 
FLYIJAX
Posts: 25
Joined: Wed Sep 01, 2004 1:48 pm

RE: No Wonder They Lose Money

Wed Sep 01, 2004 2:30 pm

Don't forget you are also talking about different types of aircraft today then were used in 1962!

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