3 ms·
The airline industry is extremely protectionist. I'd rather fly on Qantas JFK-LAX (they do fly that route) but cabotage rules prevent them from selling tickets
by JamilD 11y ago
The airline industry is extremely protectionist. I'd rather fly on Qantas JFK-LAX (they do fly that route) but cabotage rules prevent them from selling tickets on it.
Because evidently if any competition comes to the domestic aviation industry, US airlines are doomed.
- Spooky23 11y agoHistory has pretty much established that competition in the space is destructive. Allowing international carriers transiting the US to do intra-city flights soaks up demand and lowers route profitability for busy routes. Past practices were to balance demand across city pairs so as to avoid local monopolies (ie. Minneapolis and Delta/Northwest) and ensure universal service. Deregulation broke all of that, so we have price competitions at the cost of a race to the bottom in service and industry cycles of bankruptcy and consolidation. Long term, that means monopoly levels of service and pricing.
- getpost 11y agoHuh? Airline deregulation since 1978 is one of the poster children for improved service to consumers. Any transportation business is inherently subject to the flux of fuel prices and demand as it varies with overall economic activity. If anything, difficulties airlines now face are compounded by the degree of regulation that is still in force.