How Cheap Is Cheap Enough?

I know during this global recession, everyone is trying to get a good deal.  No one wants to spend too much, and no one wants to spend more than they have to.  My whole question is how much is too much?

After my last post, I received some emails regarding the swine flu (to which we are no longer supposed to be calling the swine flu because someone got offended?) and decided to investigate what this really is doing to our global travel economy.

While travel was down due to the recession to begin with, this really hasn't hit the industry yet.  The one key think that I was noticing was the fact that everyone seemed to think that they would get to go to Mexico for nothing now.  

Comments I heard were - "I bet we can get flights for $10 to Mexico now", "They must be giving trips away!"

But after speaking to a couple of the agents, they put these fallacies to rest, saying that only one airline was flying to Mexico, and that tickets were more expensive than ever, because some people still wanted to go on their holidays.  Supply is down, and strangely enough, demand is up.

The same holds true with Europe.  Airlines are struggling to fill their planes, Flight Centre is attempting to maintain their footing (with airline price guarantees for international flights) and still, people are waiting for prices to fall.  The first time I went to Australia, almost a decade ago, I took the milk run, as there were no direct flights, and paid over $1800.00.  Now, you can get a direct flight from Melbourne to Los Angeles for $1016.00.  If you will take one stop in New Zealand, you can have it for $950.  But still people are claiming that this is too much to pay.

My question is, how much is too much.  When will it be cheap enough?

The airlines have to make sure that they can pay for the fuel, the upkeep and their staff to get us safely from one destination to another.  After the recent scare that passengers had on a flight from Sydney to Vancouver, we would think that paying a little more to ensure our own safety would be better?