This is wrong. The $198 in 2008 equates to about $82-83 in 1981. So we're paying about $.83 on the dollar instead of $.40 on the dollar as is described in the article.Leap ahead to mid-2008: Travelers can still book coast-to-coast roundtrips for $198 -- which would be about $500 in 1981 dollars adjusted for inflation -- and add-on fees are now the industry norm.
Ummmm.......This is wrong. The $198 in 2008 equates to about $82-83 in 1981. So we're paying about $.83 on the dollar instead of $.40 on the dollar as is described in the article.
try 82/99 = .8282...Ummmm.......
82 / 198 = 41
I think you meant to say we're paying $.83 to the old $2 bill.
(What's that rule about not doing math in public?)
The author did the currency conversion backwards. If you can get something in 2008 for $198, the same item would be about $82-83 in 1981 (varies slightly depending on the currency calculator). I'm not debating the guys math with the 198/500. I'm debating whether he has a clue how to use a currency calculator.Leap ahead to mid-2008: Travelers can still book coast-to-coast roundtrips for $198 -- which would be about $500 in 1981 dollars adjusted for inflation -- and add-on fees are now the industry norm. It's no wonder airlines are squeezed when we're paying 40 cents on the dollar nearly three decades later.
198 / 500 = .396 or 40 cents on the dollar is what the author is citiing.
Where are you getting your facts that says its 81-83 cents on the dollar? You must be using a different rate of inflation than the author did.
From the article:tonyw said:You've got them focusing on cost savings because nobody has the balls to tell the American public you have to pay more than $200 for a flight from DC to San Fran.
It's not that someone doesn't have the balls, it's that their hands are pretty much tied. They can't raise fares, or they'd lose their plane load of pax."They can't raise fares because they have no pricing control," Stempler says. "It's not that they don't have the courage; it would be business suicide to fall out of lockstep."
A bit confusing.Leap ahead to mid-2008: Travelers can still book coast-to-coast roundtrips for $198
I know you don't, which is why you aren't a CEO . It's OK, it'll come one day.I don't see what's keeping an airline from doing that.
The article says you could get coast to coast fare for $99 in 1981 and $198 in 2008. The $99 in 1981 is equal (roughly of course) to $246 in 2008. So if the fares were priced as they were in 1981, they'd be about $250ish for the equivalent buying power. The only way to get the 480 is to put the numbers in the inflation calculator where the $198 is the 1981 fare and convert that to 2008.The way I read the article, $29 regional one ways and $99 coast to coast, so $99 each way = $198 back in 1981, which is $480 in todays dollars (or almost $500).
Which is why it says this:
A bit confusing.
$99 in 2008 was the same as $41 in 1981. But of course the tickets were $99.
Therefore, $41/$99 = about 40 cents on the dollar. If fares were priced what they were relatively in 1981, they would be $480 round trip.
Right, in the equivalent buying power thing. The author argues that it's 60% less.Okay, I get it. The way I read your numbers, air travel is about 20% less now than it was in 1981. Right?