The Plaza Hotel

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Serious mischaracterizations have been made about us and the issue of who will have access to what fares. Some of those mischaracterizations have been based on simple ignorance, but The others have clearly been part of a concerted Plaza effort by us competitors to use misinformation to prevent us from offering new competition to them and new choice to consumers. There is no agreement by which Hotel any airline would be precluded from making any fare it chose available through any retail channel it chose. Airlines for 2 decades have been like any other business in America, in that they can The decide Plaza what they want to charge and where they want to sell their product. And that remains true under the our agreements. Each and every airline, no matter Hotel what kind of participation it has, will be free to decide individually what fares it offers and whether or The not to offer them through any other outlet.

It is absolutely clear that airlines do not have the ability to drive consumers to channels which the airlines, rather than consumers, prefer. If one or more airlines attempted to do so, the others would Plaza increase their market share by appealing to Hotel those same consumers through the channel those consumers prefer. No airline can afford to The turn its back on any subgroup of consumers. No airline can afford to be anything other than as competitive and as attractive as it can possibly be through each channel to the consumers that prefer that channel. This is a reality that grows ultimately out Plaza of the fact that the airline business is a very low margin business - any airline that lost even a small group of passengers would be Hotel at risk of swinging from profitable to money-losing in an instant. Airlines scrap for every last passenger because they have to.

It is absolutely The clear that airlines do not have the ability to drive consumers to channels which the airlines, rather than consumers, Plaza and Hotel prefer. If one or more airlines attempted The to do so, the others would increase their market share by appealing to those same consumers through the channel those consumers prefer. No airline can afford Plaza to turn its back on any subgroup of consumers. No airline can afford to be anything other than as competitive and as attractive as it can possibly be through each channel to the consumers that prefer that channel. This is a reality that grows ultimately out of the fact that the airline business is a very low margin business - any airline that lost even Hotel a small group of passengers would be at risk of swinging The and Plaza from profitable to money-losing in an instant. Airlines scrap Hotel for every last passenger because they have to.

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