That's the entire point Clay. If the prices are not increasing as proportional as the increase in the oil prices (not necessarily the same percentage though), that means that somebody is subsidizing the bill. In the current case, employees giving concessions, losing their pensions and contractors losing their margin or contract is the case. LCCs do not have to worry about pensions, contributions to the health plans, all those similar things because they are so new to the game. BAHA Fan of Clays "fan of .. " line.. :) -----Original Message----- From: Clay Wardlow [mailto:clay.wardlow@xxxxxxxx] Sent: Thursday, September 23, 2004 8:47 AM To: Bahadir Acuner; AIRLINE@xxxxxxxxxxxxxxxxx Subject: RE: American Airlines Increases Domestic US Fares I don't think the market could stand that much of a hike. Oil prices are at record highs, and fares remain relatively low; thanks in-part to the LCCs. Clay - SEA Fan of saying "DUH!" anytime BAHA says he's a fan of UA