On Fri, 3 Dec 2004 06:36:09 -0500, "Morgans"
wrote:


"Cub Driver" wrote

In that sense, every cost is passed to the consumer. But in the case
of credit cards, only the guy using the card gets the payback.

After all, if every cost were simply passed to the consumer, why are
United and U.S.Airlines in bankruptcy court?

all the best -- Dan Ford

Bingo. They are not passing all the costs along, ant that means they are
not charging as much as the service costs. Hard to imagine why they are
losing money.

In competitive businesses, such as airlines, you can't pass along costs
that are related to inefficiencies in the way you do your business. And you
can't pass along costs if those costs are higher than those of a
competitor.


Ron (EPM) (N5843Q, Mooney M20E) (CP, ASEL, ASES, IA)