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Airlines have long term fuel contracts to smooth out the short term price changes, but beyond that they just pass it on to consumers. e.g. http://www.delta.com
by jws 14y ago
Airlines have long term fuel contracts to smooth out the short term price changes, but beyond that they just pass it on to consumers.
e.g. http://www.delta.com/business_programs_services/delta_cargo/current_surcharges/index.jsp http://www.delta.com/business_programs_services/delta_cargo/... the first column is the fuel surcharge that floats with fuel prices.
The Backblaze article clearly said that paying more for drives and passing it on the customers was an option. They just found a better one. They didn't mention it, but just losing money for a while is also a reasonable option if you don't want to antagonize your customers.
- deleted 14y ago[deleted]
- atYevP 14y ago*Yev from Backblaze here -> You're correct, but quick note on this. We're a boostrapped startup, meaning, we need to be constantly profitable in order to pay salary and keep the business going, taking a financial hit was the only real option we could not take, because we would have been out of business very quickly (not good for anyone).