Very funny Bob. So the experts at MIT are all wrong and this all a hoax? Sorry, but you're the one being dillusionAAl here. The reality is fuel prices have risen-and continue to rise back to 2008 levels. AA is going to need to cut costs further, ground aircraft, eliminate underperforming routes due to the fuel price run up. Perhaps turning down the TA the company offered you guys last summer wasn't the best idea given the new market reality.
Ok Josh, I try to avoid debates with meshuggeners but against my better judgement I'll bite.
Could you tell me where Mr Swelbars office at MIT is? Could you show me a link from MIT, other than Swelbars site that lists him as part of MIT? I couldnt find it.
http://mitsloan.mit.edu/faculty/directory.php
Fuel is at $115, not $147. Even if it got to $147 the carriers are much leaner now than they were then and revenues are higher, the impact would not be as great.
Even given new ancillary revenue from checked baggage charges, food for purchase, seat assignment, and other fees for services that were once included in ticket prices the general flying public is still paying less to fly in real dollars today than pre-deregulation.
No s*** but did you know that Ticket prices went down more in real terms during the CAB era than they have since deregulation? Can you produce figures to back up your claims? Do so and I'll show you how declining ticket prices has been the trend for the majority of the last 75 years. The introduction of large widebody aircraft did more to bring down real ticket prices than deregulation did.
How do todays prices compare to just 10 years ago? The fact is passengers are paying more now, in real terms, than they were a few years ago once you add in the fees etc.
Air travel is a commodity product meaning a flight from Boston to Chicago-whether it be on AA, B6, UA, or WN is virtually identical to much of the traveling public and leaving airlines minimal pricing power. Something has to give and its not going to be energy prices or fares-employees are going to have to bear brunt of rising fuel prices.
You seem to think your concessions and stagnant wages have made it possible for AA to invest in new aircraft. Did you consider the new revenue AA is able to generate with the new 777-300ERs and 737-800s? Labor is hindering AA's competitiveness and ability to invest in other capital improvements like airports, facilities, in-flight entertainment, enhancements to on board service (maybe AA could upgrade the wine selections or trade up to Grey Goose from Absolut and formerly SKYY Vodka).
The only way we will bear the brunt of rising fuel costs is through groundings and layoffs. With the load factors we have now the airlines can raise their prices or slap on surcharges .You simply need to realize that you as a customer are either going to pay more or stay home, I'm not going to subsidize your trip. I'm certainly not going to do without so you can get drunk on better booze.