Daily Archives: April 8, 2005

Air Wisconsin Loses United Airlines/Express Contract

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Thomas Daykin:

United Airlines “was trying to put the squeeze on Air Wisconsin” when it put that business up for bid, said Michael Boyd, president of Boyd Group Inc., an aviation industry consulting firm in Evergreen, Colo.
He said United’s executives probably figured they could force Air Wisconsin to cut the prices it charges United Airlines to keep that business.
“Air Wisconsin ruined that little game” when it reached the agreement to provide financing to US Airways in return for getting a piece of its regional carrier business, Boyd said.

I think United might, perhaps be squeezing too hard (perhaps they have no choice). Having recently flown through Chicago, it seems that American’s regional jet operation is less chaotic…..

California’s Housing Boom – How long?

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David Streitfeld:

Herron put no money down for her tidy one-bedroom, borrowing the entire purchase price of $211,000. To keep her monthly payments as low as possible, she got an adjustable-rate mortgage that won’t require her to pay any principal for three years.
Thanks to her “interest-only” loan, the 911 police dispatcher was able to afford, barely, her first home. She now has a stake in California’s sizzling real estate market. As her home increases in value, she plans to use some of that equity to pay down her credit cards.

Time for a Value Added Tax (VAT)?

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Bruce Bartlett:

GROWING numbers of policy analysts and politicians are saying that it may finally be time to consider a value-added tax as part of our federal revenue system. In years past, I would have been in the forefront of those denouncing the idea. But now, reluctantly, I have joined the pro-V.A.T. side. Here’s why.
There are many arguments against a value-added tax, which is essentially a sales tax that applies at each stage of production. It is costly to put into effect, and it hits the poor and the elderly hardest because they spend a higher percentage of their income.