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If the airline profits are incredibly high then someone with a large amount of capital will start their own airline to compete.
by hilbertseries 7y ago
If the airline profits are incredibly high then someone with a large amount of capital will start their own airline to compete.
- MikeTheGreat 7y agoStarting a brand-new business to compete with an established monopoly/duopoly/oligopoly that's capital intensive doesn't seem like a thing that's likely to happen. If people decided to enter markets purely based on profits then shouldn't there be a bunch of competitors for Google's search engine biz?
- macrolime 7y agoYou do realize that there are lots of low cost carriers that were started to compete with the expensive incumbent airlines?
- oat_bravo_nap 7y agoWell if what people are predicting will happen, then there will be a lot of bankrupt airlines that will have planes being auctioned off. As to your second part, search engines aren't a high profit business; advertising is.