Absolutely correct. But in most other industries, many not only figure out how to make a widget, they figure out how to make a better widget or a different widget. They use their competitive advantage to their advantage. i.e. Canada sells lumber to the US cause we've got lots of trees (hence they are 'cheap), then we buy back the same lumber in the form of toothpicks from the US, cause the American's have cheap toothpick making factories. Adam Smith figured this out 400 years ago... Yet most airlines try and take everyone from any city to any other city, appearing to provide the same product, and most loose money at it. There is no doubt, this unfettered and unchecked competition has brought tremendously low-fares to the American public, but the costs have shown up elsewhere. Taxpayers subsidizing airports and aircraft manufacturers, some pilots (responsible for your well-being) making less than a Wal-Mart check-out clerk, leasing companies and banks keeping some consumer and other business interest rates high to cover the higher than normal defaults on airplane leases. My opinion, and that of my employer, which is myself. ;-) Matthew On Thursday, September 18, 2003, at 03:00 PM, Travel Pages wrote: > Most cartels are forced to price as below. It's only about the > competition. > > Now, should they even think about deciding in lockstep to raise prices > to equate > somehow to cost, someone will step in, drive cost $1 lower and lower > the fare. > > > >> why would any> business (especially a capital and operating cost >> intensive one) want> the revenue model to be completely disconnected >> from the cost structure?I think that Dennis's point has to be THE >> most important to remember when you're trying to figure out airline >> pricing and, ultimately, airline profit and loss.Airlines usually >> ignore their costs and base their fares on market competitionor lack >> there of. > > > > --------------------------------- > Do you Yahoo!? > Yahoo! SiteBuilder - Free, easy-to-use web site design software