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Tipsheet

Prepare for Landing

The Washington Post reports that Independence Air, a Dulles-based low-fare airline, will shut down Thursday.

That reminded me of a great post I read a couple months ago by Megan McArdle. She explains the economic reasons why the airlines can't just get it together. It has to do with high fixed costs and low marginal costs and, of course, the rising price of fuel.

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And it has a little something to do with those pesky defined benefit union pensions I was complaining about last week.

I just thought you might be wondering, because I was.

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