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Aha. I think in the case of airlines its more due to deregulation. Airlines used to be tightly regulated on price, forcing them to compete instead on things lik
by true_religion 10y ago
Aha. I think in the case of airlines its more due to deregulation. Airlines used to be tightly regulated on price, forcing them to compete instead on things like comfort and convenience. Deregulation allowed them to compete on price, and thus it became unknown what level of service that the population honestly expected out of an airline.
It's as if we've had airplane tech for 70+ years, but only modern airlines since the 1980s.
We're unhappy because airlines now charge 1/3rd of their previous prices, and carry 3x as many passengers and operate a proportionately greater number of flights.
Being asked to do more with less money is a recipe for disaster when public expectations of service remain the same.
- briandear 10y agoAnd airlines used to not make a profit. http://www.economist.com/blogs/economist-explains/2014/02/economist-explains-5 http://www.economist.com/blogs/economist-explains/2014/02/ec...
- brokenmachine 10y agoGreat point, thanks for that explanation. I never knew that.