Union seeks injunction against British Airways - CNN.com
To appease the workers of the airlines all they need is more money coming in. If they were to make more money by raising ticket prices they would still make the same amount of money, as those travelling business class are paid for by the companies hey work for. The rest will be supplied by people who can afford to travel, which is the rich anyway. People will complain but they will pay.
This cost of salaries will be covered by the increased air fare price, as if it empties, just raise the price more. The problem is that most people cannot afford to travel, but those that do travel anyway will afford it anyway. If they were to raise the prices they will afford the employees and also with the shrinking people in the cabins they just make it their problem - there will always be someone travelling, plod it off onto them.
Alternatively, they could also sell tickets in bulk to the airports. That will lower costs of tickets and then they will get more people, but that leaves the problem of the vacancy of the planes, and thier accounts. This means they will make less money, unfortunately - by my calculations - but I could be wrong after all.
Or, they could also liquidate. If they simply sold off all thier planes they could make a sizeable income and keep it - the sharholders - and the planes will be picked up at a steal. That will allow the new shareholders to make their own way, who will no doubtedly opt for option one I suggested - raising the ticket prices.
Looks like the only way out of this is to 'tax the rich more', who can afford it, inevitably. Or they could sell shrares slowly, but that only provides capital, and in this business that is useless.
Nov 5, 2009, 08:46 am
