Free Republic
Browse · Search
General/Chat
Topics · Post Article

To: JAKraig
They will pay through the nose one way or the other.

No. They will not pay through the nose. Future airline travelers will pay through the nose. United will pass those costs on, driving prices slightly higher, permanently. They are clearly going to suffer a short-term blow relative to other airlines, given the tremendous negative publicity (some earned, some not-so-earned). But if they have to settle, then every other airline needs to plan accordingly (regardless of whatever processes they have in place to prevent this sort of thing, they have to accept that there is a non-negligible chance that they will be on the receiving end of this kind of feeding frenzy, and that they will become the payers of someone else's set-for-life judicial lottery winnings).

Future passengers will pay. Higher prices, less choice, more regulation. Few things in life are guaranteed (including, ironically, airline passage). But this is.
37 posted on 04/18/2017 7:43:09 AM PDT by jjsheridan5
[ Post Reply | Private Reply | To 36 | View Replies ]


To: jjsheridan5
Future passengers will pay. Higher prices, less choice, more regulation.

I agree that higher prices for airline tickets is a likely result. But that's a good thing. Fares got so low it became a race to the bottom and service declined. Nobody likes feeling they are on a Greyhound bus in the sky.

Higher fares, less overbooking, less crowding, better working conditions for the cabin crew and that all equals a more civilized trip and happy passengers.

40 posted on 04/18/2017 8:06:39 AM PDT by grasshopper2
[ Post Reply | Private Reply | To 37 | View Replies ]

To: jjsheridan5

“They will not pay through the nose. Future airline travelers will pay through the nose.”

While it’s possible for United to have to pay some sum from Dr Dao’s law suit that will find it seeking to recover those costs in higher prices, it is doubtful, from a competition standpoint that they will be able to.

Instead, their financial statements will take the whole thing as a total loss, against earnings, in the year the amount is paid. It could lower profit a bit for that year. But cause it to generally raise their ticket prices? Not likely, as their competitors will really take advantage of that. Better a one time hit to the books and get it over with.

Meanwhile, all the airlines will re-examine their own rules and see this never happens to them. THAT also will not raise ticket prices, as this event is a very rare occurrence and therefor accounting for it is not going to incur great expense.


65 posted on 04/18/2017 9:26:20 AM PDT by Wuli
[ Post Reply | Private Reply | To 37 | View Replies ]

Free Republic
Browse · Search
General/Chat
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson