What were airline prices really like 20+ years ago?
#76
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On some flights, indeed. On other flights, hard to cut from 2 to 1.6666 cockpit crew. Ground staffing has changed also due to the increased affordability of IT and airlines restricting/eliminating free checked baggage allowance to the point of charging more and way more for it.
Are you getting to something about what happened to total costs per average seat mile flown? I'm not sure what airline prices -- as paid for by customers -- being juxtaposed against various kinds of airline costs per ASM would really bring to the discussion. Note that: we have majors that have a history of going bankrupt -- sometimes even repeatedly -- and still operate; and we are talking about prices/costs for consumers.
Are you getting to something about what happened to total costs per average seat mile flown? I'm not sure what airline prices -- as paid for by customers -- being juxtaposed against various kinds of airline costs per ASM would really bring to the discussion. Note that: we have majors that have a history of going bankrupt -- sometimes even repeatedly -- and still operate; and we are talking about prices/costs for consumers.
#77
Moderator: Manufactured Spending
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The affordability of domestic US travel is worse today in real terms than it was in 1993. As I already referred: look at the data about what has happened to discretionary income of members of US households in the median income range over the past 20 years and look at various RASMs for the US majors over the same period. Use constant dollars to control for inflation. It doesn't take genius to come up with that data and use it properly. However, it does take at least some will to want to do so, just like it takes the horse some will to want to drink after being directed to the water. Of course some horses may prefer kool-aid to water, but I've done my duty to the horse by directing it to the water whether it wants to drink the water or not.
The affordability of domestic US travel on US majors isn't sharply better in 2013 than it was in 1993. And the affordability certainly hasn't improved sharply in the past 3 years either -- that is in large part why DOJ isn't such a big fan of allowing US to acquire AA in the way US is still trying to do.
The affordability of domestic US travel on US majors isn't sharply better in 2013 than it was in 1993. And the affordability certainly hasn't improved sharply in the past 3 years either -- that is in large part why DOJ isn't such a big fan of allowing US to acquire AA in the way US is still trying to do.
Therefore, your argument is invalid.
#78
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Not necessarily. GU's point is about discretionary income. I'd be surprised if the changes in discretionary income are much different than changes in total income, but it is possible. I've been unable to find any historical data on discretionary income, though. Hence my request to GU to share any data he has on that.
#79
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It also depends on the market you are in whether your airfares got better over the years. My personal experience was airfares were at their best in the late 90s , mid2000s. I got a bunch fo $60-80 airfares on airtran from ATL to different cities, some as far as Boston. In the last few years, I did notice travel to the west coast doesn't have as many great deals as they used to from Atlanta.
But you know what is much better compared to the 80s? Domestically, two one ways equal a roundtrip for the last 20 years or so. No need to consider going RT on the same airline. Mixing and matching airlines without having to pay an inefficient RT is th best thing that happened domestically.
But you know what is much better compared to the 80s? Domestically, two one ways equal a roundtrip for the last 20 years or so. No need to consider going RT on the same airline. Mixing and matching airlines without having to pay an inefficient RT is th best thing that happened domestically.
#80
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Not necessarily. GU's point is about discretionary income. I'd be surprised if the changes in discretionary income are much different than changes in total income, but it is possible. I've been unable to find any historical data on discretionary income, though. Hence my request to GU to share any data he has on that.
Another approach is to look at disposable income, which is income minus taxes. I don't think taxes have changed significantly in the last 20 years. If anything at least federal taxes have gone down.
#81
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That's true, but why look at discretionary income? Discretionary income is income minus the costs of maintaining a particular standard of living. Of course this is vague, but if people choose to live in bigger houses or drive nicer cars, their discretionary income will go down. What does this have to do with the affordability of airfare?
Another approach is to look at disposable income, which is income minus taxes. I don't think taxes have changed significantly in the last 20 years. If anything at least federal taxes have gone down.
Another approach is to look at disposable income, which is income minus taxes. I don't think taxes have changed significantly in the last 20 years. If anything at least federal taxes have gone down.
#82
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That's true, but why look at discretionary income? Discretionary income is income minus the costs of maintaining a particular standard of living. Of course this is vague, but if people choose to live in bigger houses or drive nicer cars, their discretionary income will go down. What does this have to do with the affordability of airfare?
Another approach is to look at disposable income, which is income minus taxes. I don't think taxes have changed significantly in the last 20 years. If anything at least federal taxes have gone down.
Another approach is to look at disposable income, which is income minus taxes. I don't think taxes have changed significantly in the last 20 years. If anything at least federal taxes have gone down.
So, to answer the OP's question, airfares were sharply higher in real terms 20 years ago.