Originally Posted by
Ken hAAmer
I know that FF programs are sometimes convenient scape goats, but here's the real problem with airlines right now: deregulation!
Yup, you heard me. The government needs to get more involved, and if nothing else, set minimum prices for airfares. Otherwise Adam Smith's Invisible Keynesian Hand will see one airline after another drop like flies. Sorta like they have been over the last decade.
Here's one of those points that doesn't neatly fit elsewhere, but seems to connect with everything else in this thread. That is, comparing airlines to laudries and donut shops and the like doesn't make any sense primarily for three reasons.
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Wrong! tons of industries require massive capital investment and would love a MINIMUM price. think the steel industry or cars as an example, or even the textile industry in Canada
SO ??? whould you like a minimum price for your next shirt or shoes?
The real problem with the airline industry is its still regulated [international] and countries still think they are "stategic" industries. Two countries at them moment will offer massive CASH to prop up
.... JAL Argentine Airlines got huge $$$ and Canada also just gave AC $250 million. So until we let the market truly compete we will have the mess. The problem is just like steel or any other large capital investment with a comodity thats worthless some days and very expensive other days..
WE just love airlines on FT so we think they are "special" they are NOT! its an industry that needs to compete.