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What question is there? We created monopolies with the Airline Deregulation Act of 1978. It stopped forcing airlines to provide service to regional airports, a
by droopyEyelids 10y ago
What question is there? We created monopolies with the Airline Deregulation Act of 1978.
It stopped forcing airlines to provide service to regional airports, and paved the way for the consolidation of the industry into the monopolists as Eastern, Midway, Braniff, Pan Am, Continental, Northwest Airlines, and TWA were liquidated.
- mindcrime 10y agoI'm a little iffy on this idea that there is any monopoly on air travel in the US in any general sense. Maybe for specific routes, but if you look at the big picture, you have: 4 "major" carriers - American, Delta, United, Southwest 1 "mid major" / borderline major in Alaska Airlines 1 "not a major, but not exactly a regional carrier" in Jet Blue and a bunch of regional outfits like Frontier, Porter, Spirit, etc. That's not to say that more competition wouldn't be nice, but it's hardly the case that there is no competition. Heck, as far as that goes, Peter Thiel uses airlines - and their razor thin profit margins - as the prototypical example of why "competition is for losers"[1] in his talks. [1]: https://www.youtube.com/watch?v=3Fx5Q8xGU8k https://www.youtube.com/watch?v=3Fx5Q8xGU8k
- droopyEyelids 10y agoWith air travel the routes are the product. If there is a monopoly on the route, there is a monopoly. And a cartel situation with the carriers agreeing not to compete with each other on that route.