The Marginal Cost of Luxury

Well, not really luxury. More like the perks you used to expect when traveling by air. This is from a recent New York Times article about US Airways:

“…Another employee wondered in October 2006: “Why can we not get better quality snack items for our coach customers? One customer recently compared the generic pretzel nubs we serve to the fish food you buy in a .25 gumball machine at any zoo or park.”

Actually, fish food would appear to be too costly. “We’ve worked with our purchasing team,” management explained, “to bring in many companies to compete on our main cabin tidbit item (pretzels). To date, no one has been able to match our current cost, about 3 cents per package.” (NY Times)

h/t to Nan.

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