From: "Bahadir Acuner" <bahadiracuner@xxxxxxxxx> Sent: Friday, August 19, 2005 9:12 PM > Yes, > But flying is an essential part of the economy. Distances are much higher > than any other developed country and if you are like me going to clients, > doing projects, etc. etc. there is no alternative to it. > > Currently there is a not single soul in the project that I am working on > that is local to Bay Area. One guy comes from NYC, the other one from PIT, > another one from LAX, me from SEA, PM is from East Coast, etc. etc. > > Tell them to drive and you will lose them.. > > The price elasticity of these people are much different than the folks > from > Baltimore going to see uncle Herb in Dallas.. :) > How many airlines can you and your co-workers keep alive? If your price elasticity is sufficient, maybe Executive Jet will do, but Northwest and Delta? They need something more than business class to keep their present routes and frequencies. Domestic passenger air service is not going to disappear, but the current volume, routes and frequencies may before big subsidies begin. We have already seen that deregulation killed air service to a lot of places. The inherent costs associated with high volume air service may kill a lot more if air service is not subsidized to a much greater degree than it is now. It seems highly unlikely that private investors are going to continue to buy the airplanes that result in nothing but.bankruptcies. They appear to be the major current source of subsidies. I don't expect us consumers to stop supporting intercontinental air service on routes we can't drive.. Amtrak was pronounced dead a few months ago. Now its subsidies are greater than ever. But it sure would die without them. Count the number of business travelers there are on Amtrak trains in the country between the two coasts and more than thirty miles from Chicago. Commuter rail service is absolutely essential to New York, Philadelphia, Boston and Chicago, but every mile and minute of it has a hefty public subsidy. Let any county government try to get commuter rail service (or, for that matter, bus) without putting up a hefty subsidy and see where they get. I would guess that 90 to 95% of the area of my urbanized state of Ohio is inaccessible except by taxi or private car. Gerry http://www.pbase.com/gfoley9999/ http://www.wilowud.net/ http://home.columbus.rr.com/gfoley http://www.fortunecity.com/victorian/pollock/263/egypt/egypt.html