Originally Posted by number_6
Personally I think the US-Australia airline situation has crippled the tourist traffic and has cost Australia billions of dollars a year in lost tourist revenues. There are a decade of statistics that indicate this. So enriching QF's coffers has come at a high price for the Australian economy.
I don't understand this either; I never have. If there are so many people who would come to Australia but can't because the flights are full and the prices are so high and QF is absolutely raking it in as a result, why don't the other airlines put on more flights to take a slice of the action?
As we know, it's not regulatory problems: Many airlines can start up on these routes.
As we know, it's not service quality issues: NZ could return to LAX-SYD if it wanted to, and it's definitely not a third world airline.
As we know, it's not a lack of ability to invest in new profitable routes: UA had three years of Chapter 11 protection in which to make the investment and re-establish a bigger presence in the market, while protected from start-up and unforeseen losses, but did not take the opportunity to do so.
It's always puzzled me.