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can't speak to pizza; can speak to airlines airline consolidation is largely driven by razor thin profit margins (low ticket prices, stratospherically high cap
by nunez 4y ago
can't speak to pizza; can speak to airlines
airline consolidation is largely driven by razor thin profit margins (low ticket prices, stratospherically high capital costs). one bad summer can knock an airline out of profitability forever.
consolidation is a big reason why i can fly to NYC from Houston for less than $300 round-trip but is also a big reason why flying with anyone but United is almost guaranteed to be a high-misery trip (because hubbing is extremely efficient compared to point-to-point or waypoints).
- drewcoo 4y agoClearly, airlines need better lobbyists if one bad summer means the end. https://viewfromthewing.com/why-are-airline-lobbyists-so-bad-at-defending-airlines/ https://viewfromthewing.com/why-are-airline-lobbyists-so-bad... My guess is that the status quo helps consolidate and that helps the monied interests behind the scenes. Or they'd make sure the industry had a parachute, so to speak.
- nunez 4y agoAirlines and their unions (there are many) have amazing lobbyists! Well, the big ones anyway! A bad summer won't end legacy airlines (the big ones, like American or Air Canada), but you can bet on mass furloughs. Regional airlines are a different story. It feels like one bites the dust every few years despite getting flow from the legacies.