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Thiel fails to mention that at the time that air travel was regulated airlines did make money even though they weren't a monopoly and had competition. http://w
by larrys 12y ago
Thiel fails to mention that at the time that air travel was regulated airlines did make money even though they weren't a monopoly and had competition.
http://www.investopedia.com/stock-analysis/031714/why-airlines-arent-profitable-dal-ual-aal-luv-jblu.aspx http://www.investopedia.com/stock-analysis/031714/why-airlin...
"The landmark event in U.S. commercial aviation history – as important as the incorporation of sound was to motion pictures, or the forward pass was to football – was the Airline Deregulation Act of 1978. Prior to its passage, the federal government set rates, fares and schedules, guaranteeing profitability to each oligopolistic airline but doing its best to thwart innovation. "
So prior to about 1978 during certain stretches it was pretty good to be operating an airline.
- Spooky23 12y agoThwart innovation? The only true change had been low cost carriers, who can use their late entry to the market to avoid things like collective bargaining and route networks. So now we have a dreadful airline industry that only survives by grace of the occasional direct investment by the government.