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One could swear to never fly United, if one hadn't already done so for American. Airlines have the worst customer service of any industry. Their horror stories

One could swear to never fly United, if one hadn't already done so for American. Airlines have the worst customer service of any industry. Their horror stories are actual horror stories.

woodchuck64 14y ago
"Transcontinental Monopoly Airlines, this is Lisa. How may you help us?" Thanks, Berkeley Breathed (http://www.thecomicstrips.com/store/add_strip.php?iid=84029 http://www.thecomicstrips.com/store/add_strip.php?iid=84029)
svachalek 14y ago
One interesting property of the insurance industry, as I've heard it, is that left to pure capitalistic pressures, companies will charge too little to actually provide the product they are selling. I don't see why that same problem would apply to air travel but it certainly seems to be the case. I know airlines outside the US provide a much more civil experience but I don't know whether they face the same competitive pressures.
- mikeash 14y ago
  In any perfectly competitive market, prices will be driven down to the marginal cost of the product. This is basic economics. To the extent that companies are able to make a profit, it's because markets aren't perfectly competitive. People identify with brands, large capital investments are often required, regulations have to be overcome, it's illegal to create a product identical to one already being sold, etc. But still, many markets come close enough to cause trouble. Insurance may be one. Airline travel certainly seems to be another one. There's an old joke that the way to make a small fortune in the airline business is to start out with a large fortune. In aggregate, the industry appears to take a loss, long-term, but they manage to keep going through bankruptcy, new entrants, and the occasional government bailout. A lot of non-US airlines are national airlines which are somewhat governmental in nature. They tend to have regulatory advantages and may be outright subsidized by their government. Their motives may be less about making money and more about providing services, showing a good image of their country abroad, and whatever internal bureaucratic motivations they end up with.

One could swear to never fly United, if one hadn't already done so for American. Airlines have the worst customer service of any industry. Their horror stories are actual horror stories.

woodchuck64 14y ago

"Transcontinental Monopoly Airlines, this is Lisa. How may you help us?" Thanks, Berkeley Breathed (http://www.thecomicstrips.com/store/add_strip.php?iid=84029 http://www.thecomicstrips.com/store/add_strip.php?iid=84029)

svachalek 14y ago

One interesting property of the insurance industry, as I've heard it, is that left to pure capitalistic pressures, companies will charge too little to actually provide the product they are selling. I don't see why that same problem would apply to air travel but it certainly seems to be the case. I know airlines outside the US provide a much more civil experience but I don't know whether they face the same competitive pressures.

mikeash 14y ago
In any perfectly competitive market, prices will be driven down to the marginal cost of the product. This is basic economics. To the extent that companies are able to make a profit, it's because markets aren't perfectly competitive. People identify with brands, large capital investments are often required, regulations have to be overcome, it's illegal to create a product identical to one already being sold, etc. But still, many markets come close enough to cause trouble. Insurance may be one. Airline travel certainly seems to be another one. There's an old joke that the way to make a small fortune in the airline business is to start out with a large fortune. In aggregate, the industry appears to take a loss, long-term, but they manage to keep going through bankruptcy, new entrants, and the occasional government bailout. A lot of non-US airlines are national airlines which are somewhat governmental in nature. They tend to have regulatory advantages and may be outright subsidized by their government. Their motives may be less about making money and more about providing services, showing a good image of their country abroad, and whatever internal bureaucratic motivations they end up with.