NPR: Head-Scratcher Alert: Jet Fuel Prices Are Falling And Airfares Are Rising
#1
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Join Date: Apr 2015
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NPR: Head-Scratcher Alert: Jet Fuel Prices Are Falling And Airfares Are Rising
http://www.npr.org/sections/thetwo-w...res-are-rising
Yes, I know that COGS has little to do with fares. However, if I were a creditor stiffed after an airline bankruptcy, I would be kinda pissed about this. I guess airlines have no obligation to pay off the stiffed creditors with their current profits (naive question I know)?
Yes, I know that COGS has little to do with fares. However, if I were a creditor stiffed after an airline bankruptcy, I would be kinda pissed about this. I guess airlines have no obligation to pay off the stiffed creditors with their current profits (naive question I know)?
#2
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http://www.npr.org/sections/thetwo-w...res-are-rising
Yes, I know that COGS has little to do with fares. However, if I were a creditor stiffed after an airline bankruptcy, I would be kinda pissed about this. I guess airlines have no obligation to pay off the stiffed creditors with their current profits (naive question I know)?
Yes, I know that COGS has little to do with fares. However, if I were a creditor stiffed after an airline bankruptcy, I would be kinda pissed about this. I guess airlines have no obligation to pay off the stiffed creditors with their current profits (naive question I know)?
The big problem is that anticompetitive mergers were allowed, the biggest contribution to the increased prices.
#3
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I still would be PO'ed if I were a stiffed creditor. No recourse for them, right? I guess the silver lining is that airlines can now afford to pay them. I guess it's naive to think an airline might give little bit in current negotiations with a stiffed creditor?
#4
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Fair enough. I would be much obliged if the moderator could kindly change the title to "NPR reports: fuel costs low, fares rising" Totally agree about the mergers. Shame on the FTC.
I still would be PO'ed if I were a stiffed creditor. No recourse for them, right? I guess the silver lining is that airlines can now afford to pay them. I guess it's naive to think an airline might give little bit in current negotiations with a stiffed creditor?
I still would be PO'ed if I were a stiffed creditor. No recourse for them, right? I guess the silver lining is that airlines can now afford to pay them. I guess it's naive to think an airline might give little bit in current negotiations with a stiffed creditor?
Any bankruptcy lawyers out there who can comment from a more educated standpoint?
#6
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Not that I'm qualified to speak for Tchiowa but I think he would say "because they can" and "all profitable companies do this" or something to that effect.
#7
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To try to maximize carrier profits and to try to minimize some carrier costs -- something that is easier to do when governmental waivers have been granted to carriers like they have been.
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#9
Join Date: Dec 2006
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The economics writer James Surowieki, had a really interesting piece in the New Yorker recently about the market's seemingly inverted response to low oil prices. This would maybe, partly, explain why airfares have risen.