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As usual Matt Levine has a pretty good take on this: https://www.bloomberg.com/opinion/articles/2020-03-17/the-good-times-for-airlines-are-over https://www.bloo
by jcfrei 7y ago
As usual Matt Levine has a pretty good take on this: https://www.bloomberg.com/opinion/articles/2020-03-17/the-good-times-for-airlines-are-over https://www.bloomberg.com/opinion/articles/2020-03-17/the-go...
- sm0ss117 7y agoThis gets to one of the fundamental limits of for profit operation of businesses, different scales of firm have different incentives. For American Airlines it made logical sense to do stock buybacks, but if the whole of society was in control of American Airlines they would've prioritized service and just paid to keep the operation on life support during the downturn.
- jcranmer 7y agoGiven the way that public transit is run, I think service would be the lowest priority of an airline if it were run by society instead of capitalists.
- sm0ss117 7y agoTry public transit in literally any country besides the US, the US is currently terrible at public utilities for ideological reasons. Basically the line of thinking is the government doesn't work, so let us in power to prove it to you
- throwaway55554 7y ago> But you are the hypothetical CEO of American Airlines and your loyalty is to the shareholders. Because screw your employees!