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Why would a country need two domestic airlines? To keep one alive makes sense as a strategic asset. But two? Can just make the market more friendly to foreign a
by maltelandwehr 6y ago
Why would a country need two domestic airlines? To keep one alive makes sense as a strategic asset. But two? Can just make the market more friendly to foreign airlines if more competition is needed/wanted.
- bluGill 6y agoForeign competition is a problem because employees of the domestic company vote (the foreign company doesn't have a large back office of voters). Thus the domestic company can vote for things good for them bad for competition and bad for the country. Two companies means that the thing voted for is more likely to be fair because a number of good for one ideas are not possible with the other opposing it. Note that many of the things good for the domestic company are bad for the country overall. However non employees are not individually harmed as much as employees are individually helped. Thus most voters won't oppose the bad regulations.