The problem with the free market is it isn't necessarily optimal. If you remove assistance from the airlines you instantly lose United, American and USAir. I can't even start to predict the economic ramifications of that, but I'd be willing to bet there's plenty of non-US airlines that would benefit from the collapse of the US players.
Dd
Just because it isn't "optimal" choice doesn't mean it isn't the best choice in a given circumstance. Sometimes "optimal" isn't practical or available.
And you're right on one point, you can't predict the economic ramifications of losing three airlines. But if the capitalisti ceconomic model has shown anything, it has shown there is opportunity in chaos. I'm sure Jet Blue and Southwest are thinking the same thing.
Correction Mr. President, I DID build this, and please give Lurker a hug, we wouldn't want to damage his self-esteem.
Ddrak wrote:The problem with the free market is it isn't necessarily optimal. If you remove assistance from the airlines you instantly lose United, American and USAir. I can't even start to predict the economic ramifications of that, but I'd be willing to bet there's plenty of non-US airlines that would benefit from the collapse of the US players.
I'm curious, what kind of support does JAL, Luftwansa, KLH/Delta, Kwanis, etc. get from their respective governments? To listen to the airlines, they've been loosing money since the dawn of time (or the 1980s). At some point don't you just need to let them die and be reborn?? It's getting to be like giving aid money to the Somalis and being shocked when the warlord of the week blows 90% of it on crap.
Smaller carriers survive due to clear focus on their niche. They could not hope to full the role of the big 3. When UPS went on strike Fed Ex and DHL could not come close to holding their jock.
Which 3? US Air and United are junk stocks at the moment. American is doing a little better.
Free markets don't necessarily provide the best solution to infrastructure problems is all I'm really trying to say, and there are cases were it makes a net positive for a government to prop up a business that is losing money and has little to no chance of ever recovering. Not often, but it does happen.
As far as I know, most of the world's airlines are substantially government subsidised - especially once you break out of niche markets.
Ddrak wrote:Which 3? US Air and United are junk stocks at the moment. American is doing a little better.
Free markets don't necessarily provide the best solution to infrastructure problems is all I'm really trying to say, and there are cases were it makes a net positive for a government to prop up a business that is losing money and has little to no chance of ever recovering. Not often, but it does happen.
As far as I know, most of the world's airlines are substantially government subsidised - especially once you break out of niche markets.
Dd
Was replying to kulaf's post. Fed-Ex, DHL and UPS. Check the stocks on those three, and evaluate them in light of kulaf's argument.
Correction Mr. President, I DID build this, and please give Lurker a hug, we wouldn't want to damage his self-esteem.