Wednesday, April 06, 2005

Continental Airlines New Long Haul Flights

Continental Airlines

Guess where the new airline flights are being added. What countries are experiencing tremendous growth? Now you know. India, China, and even developing Latin American Countries are gaining direct service from the US via Continental.

The latest Continental flight is 7,323 miles non-stop from NY to New Deli. My son-in-law will travel to China in June.

Common sense investing is what I like to do. We all know that low wage jobs are being out-sourced to developing countries. In my son-in-law's case, kitchen cabinets are being designed and assembled in High Point NC. Does it not make sense that he and others in his firm will need to visit China on a regular basis if the cabinet parts are going to be made in China?

Airline load factors are soaring. When load factors go up, fares on 100% of occupied seats go up. This is what you call operating leverage. The total revenues from a 5% increase in seats occupied may cause total revenues to go up 10% or more. Prices of seats are set by the price the last guy on the plane is willing to pay. If there is a risk of missing an important flight, businesses will pay much more than double current fares.

Do the CAL GULP! Buying what is hard to buy is usually the best buy.