NEW PRICING MODEL NEEDED FOR US CARRIERS

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By TESTCustomwebLP TESTCustomwebLP April 20, 2011 08:52

NEW PRICING MODEL NEEDED FOR US CARRIERS

US carriers need a better pricing model that can cope with the fluctuations in the price of fuel, says equities analyst Jamie Baker of JP Morgan. In a note he said: “We can think of few consumer products that can be purchased up to 330 days prior to consumption, where the manufacturer or service provider has virtually no knowledge or control over their largest input cost [fuel].”

Bakers says US airlines should only sell tickets for 45 days in advance, and those that are sold more in advance be sold fuel-less fare stubs so that fuel costs can be added closer to the date.

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By TESTCustomwebLP TESTCustomwebLP April 20, 2011 08:52
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