On Mon, 11 May 2009 15:13:50 -0700 (PDT), Robert M. Gary wrote:

I think that many FBOs were just losing money during the fuel
increases and are now recouping.

I'm sure you are right, but that's a goofy way to run a business... It
uses the assumption that the same number of rentals will occur at any
price.

Given that they call around to check each other's prices, once everyone's
price has floated upwards, they feel comfortable leaving them there. They
love the new profit margins and no one considers dropping their price.

When the rental volume drops, they blame it on the recession and use that
as further reason to hang on to the increased margins.

They don't understand they've exacerbated the effects of their recession by
choking off demand with higher prices.


--
Dallas