3 ms·

I mean, what do you expect happens after airlines die from a price war? It’s not lower prices.

• salawat 7y ago
  Generally speaking, I'd hope it wouldn't be "Everything consolidates without bound." Doing that just sets the stage for a monopoly to form, just add time. The price war should be won by the airline that can most efficiently manage resources and adapt different business models to provide stable service with fewer inputs. That is what the Market is purportedly for, no? Consolidation is not good. High variety distributes society's eggs across many baskets, creating fault tolerance. Consolidation leaves us one black Swan away from a potentially unrecoverable calamity.
  • yzmtf2008 7y ago
    > The price war should be won by the airline that can most efficiently manage resources and adapt different business models to provide stable service with fewer inputs. And then what? Is that not a monopoly? I know the classic response to this is newcomers will come up with lower prices, but what if there's economy of scale, and newcomers just can't compete?