This is one thing I'll never understand. I'm going to Atlanta in Mar. so I'm checking out airfares. One flight went from Buffalo-Albany-Atlanta, $188. I figure I'll check something out. I price the flight from Buffalo-Albany, $247!!! Same EXACT flight! How is it cheaper to fly to Atlanta than Albany with an additional flight? No wonder airlines can't make any money. I found some direct flights which are cheaper but this baffles me. Does anybody know why prices are all over when it comes to airfare?
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Here's a great example I just read on the website for one of our local TV stations, WANE.
"Newschannel 15 did some price comparisons and certain dates it was cheaper to fly to Europe from Ft Wayne than it was to fly from Indianapolis or Detroit. However, Newschannel 15 also found on certain dates, it was more expensive to fly from Ft Wayne to Florida than it is to fly from Ft Wayne to Paris. Airport officials say travellers should always do their homework and weigh cost versus convenience."See the big picture, enjoy the details
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Help me understand this industry.
Since airlines are always either on the verge of, or actually in bankruptcy, why would anyone buy airline stock? I don't see any reason to consider these in my portfolio. Airlines claim they are loosing money then they turn around and lower rates. There must be 10,000 different fares in the system. You'd be lucky to find any five people on a particular flight who paid the same for their tickets.
Why would anyone want to have a career in this industry? Bankruptcy, massive layoffs, and suddenly removing workers pensions just short of their retirement sure is not going to attract many sharp people.
How is it that the airlines get financing and credit from suppliers with their proven track record for failure?
There has to be some piece of this puzzle that is not being seen.Jim
My Gallery
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Originally posted by SiriusRIMZ
Got to love having local Airline Giants...
Southwest and American have massive Hubs in the DFW Metroplex. I can fly from Dallas to Kansas City or St. Louis for $69, or Albuquerque for $49.
Some years ago, when the cost of a barrel of crude oil was much lower...SWA, (Southwest Airlines), purchased futures of oil for decades to come, it was a massive investment, and now it's paying off in spades. Southewest was able to retire it's Boeing 737-200 models, and is continuing to upgrade it's flet to the Boeing 737-700 and -800 model. Although it will continue to keep the B737-300 for it's shorter routes.
Alot of the smaller airlines, like the now defunct Independence Airlines, and what some fear will happen to JetBlue, started out with a massive capital ad were able to lease/purchase fairly new or brand new airframes with maintenance agreements with the airframe manufacturer. What went wrong is that the airlines weren't counting on the rising costs of fuel and maintenance that goes with it once their maint. contracts expired.
Independence Air was really a case of bad timing. They had started with a fleet of Canadair Region Jets, the -100 and -200 models, (CRJ1 and CRJ2). About a year ago, the U.S adopted a reduced form of vertical separation above 29,000, or FL290. But it required modifications to the equipment of these aircraft. all the airlines had made the switch, except for Independence Air. This forced them to fly their aircraft at an altitude of 28,000 or below, which is not conducive to fuel savings at ALL. Considering that a stereotypical cruise altitude for a CRJ-200 from O'Hare to Dulles is about FL350, or 35,000ft. On a day with no turbulent air or adverse jet stream, a pilot will preferably take his aircraft as high as the certification will permit. The on-board fuel management system will calculate the best altitude and way to fly along the route of flight to conserve fuel. Sometimes the quickest and most fuel efficient way to get somewhere is not in a straight line.
It's a real shame what's happened to the pensions of some of our retired pilotsand aviation personnel that have flown us to our familes and on vacations. Some of them flying for over 35-40 years. It shouldn't have happened to them.
Well I've rambled on enough.
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