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I've heard a theory that commercial aviation as a whole has always been unprofitable. Look at how many airlines have gone bankrupt since deregulation in the US
by bbanyc 11y ago
I've heard a theory that commercial aviation as a whole has always been unprofitable. Look at how many airlines have gone bankrupt since deregulation in the US and the removal of flag-carrier subsidies in Europe. Boeing and Airbus are both indirectly subsidized by their respective governments, with each claiming the other's subsidies are somehow unfair.
- sien 11y agoThe worst sort of business is one that grows rapidly, requires significant capital to engender the growth, and then earns little or no money. Think airlines. Here a durable competitive advantage has proven elusive ever since the days of the Wright Brothers. Indeed, if a farsighted capitalist had been present at Kitty Hawk, he would have done his successors a huge favor by shooting Orville down. — Warren Buffett, annual letter to Berkshire Hathaway shareholders, February 2008.
- bbanyc 11y agoThis says as much about capitalism as it does about aviation.