Originally Posted by keithguy
Comment #1
Comment #2
Comment #1 contradicts comment #2. If passengers want cheap fares, then the only way to be "competitive" is to reduce fares. If reducing amenities will not lower fares, then one cannot associate amenities with the thought that customers only want low fares.
Well, no. If revenues do not exceed costs, then the airlines are losing money, right? And we can agree that if they do not make any money, that in the long run, they will cease to exist, right? In order to make money, revenues have to exceed costs. In the current state of the industry, revenues do not exceed costs, and the airlines are losing money. There is no incentive to reduce revenues, and in the current climate, if they cannot INCREASE revenues, they have to cut costs. Nothing more and nothing less. Cutting costs today helps maintain tommorrow's fare structure, but it is impossible to *KNOW* what will happen with future fares if costs aren't cut today.