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> Pretty sure the airlines would love to not burn money holding a spot. I'm absolutely certain they would. Monopolies are incredibly profitable, after all, an
by lapsedacademic 5y ago
> Pretty sure the airlines would love to not burn money holding a spot.
I'm absolutely certain they would. Monopolies are incredibly profitable, after all, and a repeatable strategy for killing off all newcomers is step zero.
I.e., that government rule was created to address a rational but pathological behavior in a market.
Lufthansa could always not fly those routes. But then the business would lose money to fines, possibly lose gates, and maybe go bankrupt.
So, yes, in the name of the business. And of course that business's behavior is completely predictable.
Anyways.
Pointing fingers at isms is a waste of time. Businesses operate in markets. Markets are human inventions. Especially in the case of something like an airline, a Market is a Market in the Stock Market sense not in the Bazaar sense.
The question is: how do we modify market rules without re-introducing the aforementioned pathology?
Which is a REALLY hard question! The simplest solution, from a market perspective, might be charging a fair price for carbon, such that this sort of behavior is no longer rational. Of course, that's a non-started politically, so... here we are.
- refurb 5y agoMy understanding is the EU had already reduced the need to fly slots during covid. That could be reduced further but it appears they are doing the opposite. But anyways you “stop pointing fingers” is funny when it’s literally a government rule creating this mess.
- lapsedacademic 5y agoThank you for your substantive suggestion re: how to change these rules without risking re-introducing the pathology they were designed to address. Truly insightful stuff.
- gruez 5y ago>how to change these rules without risking re-introducing the pathology they were designed to address seems pretty obvious? drop the flight requirements when covid lockdowns are on and flight volume is low, then when flight volume picks up reinstate it. It's not rocket science.
- dt3ft 5y agoThis is what I would have done the moment the pandemic hit.
- refurb 5y agoYou're welcome. The problem is that the EU is requiring using X% of flight slots (reduced due to Covid), but those flights aren't actually running due to low demand, so empty flights are used to hit X%. If they simply reduced X%, then they could run fewer flights. Or you disagree?