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Re: bankruptcy questions

Thanks, David, for the information about the law.  Yes, the low cost carriers are are
doing ok now, but once the legacy carriers are gone they will face the same problems.

The basic flaw is that the cost of flying one more passenger is minimal.  According
to basic economic theory, competition drives prices down to that level, which cannot
support the fixed costs.
 --
Michael Perelman
Economics Department
California State University
Chico, CA 95929

Tel. 530-898-5321
E-Mail michael at ecst.csuchico.edu
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