FlyerTalk Forums - View Single Post - Germany wants to force price hike on Emirates
Old Nov 20, 2009, 3:56 pm
  #14  
SmilingBoy
 
Join Date: Sep 2005
Location: BRU
Programs: LH SEN, SN Gold, Eurostar Carte Blanche, BA, QF, AF
Posts: 6,856
Originally Posted by colpuck
If EK is dumping seats, then there is a real concern and the German government has a right to intervene. If not then the government needs to find something better to do with its time.
Disagree strongly. Antidumping laws are nothing else than protectionism with a better name. The politicians making or implementing the laws invariably claim that anti-dumping laws are good for the country. However, they are only good for a select few (shareholders and/or employees), and hurt most consumers.

In any case, what does "dumping seats" mean in an airline context? Marginal costs are close to zero, so it is hard to speak about below-cost pricing if only a few seats are sold at a low price. And the articles seem to suggest that EK's prices were only up to 20% lower than those of LH (as this is by what they increased prices) - surely it is plausible that EK's costs are 20% lower than LH's.

Shame on you, German Government!
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