Airline Fincial Woes

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I have a question. Airlines have fixed, or market driven, costs for
equipment,fuel, landing fees etc and if labor costs, the principal variable,
can't be reduced, what happens?

When there is little prospect of making money on given routes because of
high costs and low yield should management retrench? It apppears to make
little sense to keep flights in the air when the company has little chance
of making a profit. The unwillingness of the passenger to foot the bill for
these flights should not be borne by the shareholders. Prudent management
would demand these flights be eliminated if costs and fares cannot be
balanced.

I solicit opinions.

Greg

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