Originally Posted by
3Cforme
You're kidding, right? Comrade? Comrade?
Capitalism allows enthusiastic investors to demonstrate belief in a business plan by funding it. There's heavy institutional ownership of U.S. airlines and Honeywell, GE, UTX... at this point. These investors are not naive nor uninformed.
U.S. airlines have been making pretty good money for the last five years. Margins aren't uniform but decently-run carriers are surely covering their cost of capital. That is one definition of financial sustainability.
Fewer flights/seats might make the (very few) capacity-constrained U.S. airports more operationally efficient. The other 400 airports with scheduled passenger service don't really have a problem. Fewer flights/seats would surely drive up prices. Why do prices need to be higher when carriers are making good profits?
The airline industry is heavily subsidized on many levels making it a 'socialist' type enterprise as opposed to 'capitalist.' Airports are subsidized, aircraft mfg is supported with tax breaks for companies in various jurisdictions, and the list of other "socialized" costs is long and varied. With regards to making money, airlines are a terrible investment. Take away the subsidies and hidden supports and the whole system would be in shambles.
Any time you want to support my business ventures with taxpayer money, comrade, please advise. Thank you and good day.