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The Economics Of Malaysia Airlines

9:00 am in Daily Bulletin

Jessica Plautz caught up with Malaysia Airlines:

  • The carrier is now estimated to be losing $2.2 million a day as planes fly empty.
  • The airline was unprofitable even before the twin disasters of MH17 and MH370.
  • Malaysia Airlines has doubled the commission it offers to travel agents who book routes on their flights.
  • It has also slashed prices – a flight from Kuala Lumpur to Beijing costs $238. Other carriers charge over $500.
  • If the airline has to shut down because of the crash it won’t be the first. Three years after flight 103 from London to New York was bombed in the 80s, the airline Pan Am went bankrupt.

See photos of the empty planes and terminals, and read more over here.

Source: Mashable

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The Airline Insurance Industry

9:00 am in Daily Bulletin

This year has seen several tragic air disasters. Keith Bradsher wrote about the airline insurance industry:

  • Malaysia Airlines has a $2.25 billion overall liability policy. Airline insurance policies normally come with clauses that limit the amount that is paid out for search and rescue costs – but Malaysia Airlines’ policy does not come with any such clause.
  • Given the millions that governments are spending searching for the missing MH370, Malaysia Airlines (and thus its insurers) might be asked to pay for some of the costs.
  • The loss of MH370 has triggered a partial insurance payment under the “war risk” policy pending confirmation that the crash was not a result of intentional suicide or criminal action.
  • Insurers will sometimes prohibit airlines from flying over dangerous regions but no such directive seems to have been issued on the route MH17 had taken over Ukraine.
  • In addition to the loss of two Malaysia Airlines planes, and the crashes in Taiwan and Mali, insurers will also be on the line for planes damaged in the shelling of Libya’s main airport, and the Taliban’s attack on Pakistan’s main airport in Karachi.
  • It is estimated that so far this year insurers have paid out $600 million in payments. The industry as a whole collects about $65 million a year in premiums.

Read more over here.

Source: The New York Times

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Classmates To Soulmates

9:00 am in Daily Bulletin

Facebook looked through its data to figure out what educational institutions have to do with marriage:

  • 15% of married Facebookers appeared to have met their spouse in high school. Twice as many did so in college.
  • Individuals are more likely to meet their spouse in high school if they live in rural areas.
  • The schools that produce the most marriages are also often the most religious.
  • At Rose-Hulman Institute of Technology where men make up 88% of the student population, there’s a 70% chance that a woman will find her husband at the university.

Check out the fill list of top colleges to find your life partner, the methodology, and some incredible infographics over here.

Source: Facebook

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