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I'm all for capitalism, but doesn't this sound excessive to you? |
| New York media conglomerate News Corp is paying $50,000 a month to rent an apartment for Chairman Rupert Murdoch. Mr. Murcoch's combined salary and bonus reached a high of $25.7 million in the ... |
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Young women selling coffee while scantly clad: Good buisness or sexplotation? |
| Recently, an article in the Business section of the Daily Breeze of Torrance, California, did a story on a small coffee stand in Tukwila, Washington called: Cowgirls Espresso. The company employs ... |
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Why a person cant be happy always? |
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Why do u want to work for starbucks? |
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Does starbucks rule the world? |
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Have you ever felt like punching your boss in the face? |
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Whats the richest company in the world? |
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How important is a hot wife for corporate success? |
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Why do people get mad at me when I stick all of the whiteboard markers together to make a 6-foot chain? |
| I decided to connect all of the Expo markers in the boardroom to make a six-foot chain of markers. Now the manager is mad at me.... |
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Can my company lower my wages? |
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Walmart and a conflict? |
| I work for walmart . I have told them over and over again that I can not work Night . They are making me fail my class . I also work full time there To. Can I Go To My College and say something and ... |
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Jose V | Why are airlines losing money? |
Flights are usually full.
Airlines have cut many routes that were non-profitable.
Fuel costs are high? Ok, so RAISE the prices accordingly.......
Competition will not increase prices? Ok,let them go bankrupt.
How is it possible that you operate a business almost at "full capacity" and lose money. How executives justify this failure to their boards. I don't get it. |
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John Bradley
 |
The people running airlines aren't amateurs. They know what they are doing. You should try running your own airline to see how well that goes for you.
Yes, the business is indeed that competitive enough that airlines can't simply raise prises to cover the rising cost of fuel.
In addition, most legacy airlines have unions to deal with, which not only raise the cost of labor significantly, they have enough power to limit the airlines' abilitiy to quickly change strategies in a fast changing business environment. As far as why unions like biting that hands that feed them, then that's another question. |
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vatoloco666
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Fuel is part of it but they were losing money beforehand. They have survived this long because our government keeps them afloat. |
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quovazi
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You named all the internal reasons of flight cost v. competition, rising fuel costs, decreased flights, and downsizing - but there are external factors:
Airport space fees, use of terminal, airport staff and equipment, fuel supplier fees, maintenance, taxes (state, fed, international, etc.), stock market, FCC compliance surcharges, cost of new planes, decrease in passenger travel, and replenishing amenities (food, blankets, pillows, etc.), cost of upgrades (tv, seats, lighting) |
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Sure you can use it
|
Not all airline are loosing money.
The smaller ones like Continental and Nortwestern are doing fine.
Airlines have so much overhead. It's very expensive for them to do business. |
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mindreader
 |
Airlines depend on loyalty of their frequent flyers. If one airline were to raise prices, and others don't, it would lose their loyal customers. Also, airlines are profitable in some markets but not in some. So an airline might make money flying from Los Angeles to San Francisco but not from Los Angeles to Seattle. In such cases, if they remove the LA to Seattle route, they might turn off loyal customers who might flock to their competition. I believe if jet fuel goes down, and if airlines finish their consolidation process to where there are 3-4 major carriers, it will help the industry. I write about these kind of things often so visit the link below if you want to learn more:
http://stocksandblogs.com/2008/07/ryan-air-is-flight-risk.html |
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ã‚ングダムãƒãƒ¼ãƒ„
 |
Becasue gas is about $4 |
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golferwhoworks
 |
mostly fuel cost--- the only airline to aquire fuel at old prices was Southwest and they have gone up a bit on fairs but if others are to stay and compete then they have to keep prices in line. They have to or they have empty flights that they must still fly per the FAA |
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BeauTifully DeZined
 |
you said it urself..fuel costs...tickets r ao much more expensive that people are finding other(cheaper) means of travelling...can u imagine how much it cost a single airline to operate on a daily basis??? espacially with the rising cost of fuel, its no longer profitable...nowadays it sake more than a full flight of people to just break even on a single flight...its the economy, simply put..not only are the airlines losing money, but every big business is losing money because we as americans have less to spend.... |
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Chris P
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Obviously the gas |
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♥ Miss Smiley ♥
|
The high gas prices.. |
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linabina
|
Well I think the reason is because our economy is in a resetion so people don't have as much money to spend and the cost of everything is going up, especially gas... |
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Sam The Man. =-}
 |
probably because ticket prices are increasing. |
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Kath <3
|
Gas, and competition
<3 |
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sunil k
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The voulme has gone down.
For Ex: Exxon Mobil said that it makes only 4cents on each gallon. Then how do they make profit? because they sell so many gallons per day.
Now the airlines are operating fewer planes (say at full capacity), but not many as they did before, so they are making some profit on this but not as before.
But the other factors like maintanence, airport fee, Employee salaries are constant. Which is giving them loss. (The gas price is the major factor)
Also note that the gas price has almost doubled but the airfares are not doubled (as no one would fly if they did).
If the company lays of few employees, spend less on maintanence and save as much gas as they can, then they can make profit but not much (At least they wont make loss).
But do you think they will lay off their employees? what if the gas prices go down as we saw in last 2 weeks? |
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Terry S
 |
Sky high Jet Fuel Prices |
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