Comments on: When airlines don’t compete http://blogs.reuters.com/felix-salmon/2013/11/18/when-airlines-dont-compete/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: TomLindmark http://blogs.reuters.com/felix-salmon/2013/11/18/when-airlines-dont-compete/comment-page-1/#comment-48640 Thu, 21 Nov 2013 03:13:44 +0000 https://blogs.reuters.com/felix-salmon/?p=22751#comment-48640 Your last paragraph warms my heart.Do you hold the same position towards the auto company bailouts and federal assistance.

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By: AngryInCali http://blogs.reuters.com/felix-salmon/2013/11/18/when-airlines-dont-compete/comment-page-1/#comment-48638 Tue, 19 Nov 2013 11:08:38 +0000 https://blogs.reuters.com/felix-salmon/?p=22751#comment-48638 Are the profit margins of the legacy carriers in the US particularly high? If not, it’s not clear how they’re taking advantage of this supposed lack of competition.

I agree with Harpstein1; there does appear to be a lot of competition to me. I hardly ever see a significant difference in price when I search for flights. And the flights aren’t loaded with empty seats for the most part, which implies that the demand is there at the price.

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By: y2kurtus1 http://blogs.reuters.com/felix-salmon/2013/11/18/when-airlines-dont-compete/comment-page-1/#comment-48637 Tue, 19 Nov 2013 10:53:28 +0000 https://blogs.reuters.com/felix-salmon/?p=22751#comment-48637 @Fifth Decade

“Monopolies form, not of a single company, but of a small group often acting as one – not in the way of a cartel”

Can you point me to a few companies which have achieved this cartel/monopoly status so I can buy stock in them? Nike has a pretty dominant position, I’ve done well there. Comcast has made me a nice profit. Ditto Coke and CSX.

There just aren’t too many industries where a few players control a huge % of the business.

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By: FifthDecade http://blogs.reuters.com/felix-salmon/2013/11/18/when-airlines-dont-compete/comment-page-1/#comment-48636 Tue, 19 Nov 2013 00:29:15 +0000 https://blogs.reuters.com/felix-salmon/?p=22751#comment-48636 Funny thing about the free market is that as companies grow, they should get economies of scale but instead they claim they need subsidies and should merge as they can’t make any profits and need to become even bigger. This does reduce choice generally. Monopolies form, not of a single company, but of a small group often acting as one – not in the way of a cartel, but just because they can each track each others’ prices easily.

Monopoly regulators have been weak and ineffective on both sides of the Atlantic for a decade or two now letting monopolies and semi-monopolies form in niche markets, is spoecific product ares, or just with a few large companies they can keep their eyes on more easily. When will they wake up and see that if they let companies get bigger, consumers will suffer, new blood will not enter the market, and the cost to the taxpayer (through subsidies) will continue?

What they call Capitalism today really isn’t free enterprise anymore.

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By: Harpstein1 http://blogs.reuters.com/felix-salmon/2013/11/18/when-airlines-dont-compete/comment-page-1/#comment-48634 Mon, 18 Nov 2013 20:10:16 +0000 https://blogs.reuters.com/felix-salmon/?p=22751#comment-48634 Can you explain your logic that the big carriers don’t compete on price? I fly every few months, mostly for business, and I can tell you that price is about 90% of my decision-making. $50 is about the most leeway I have in picking flight A vs. flight B, assuming times for both work within my schedule.

One reason that mergers are “good” is that the airlines haven’t been able to turn a profit until the last couple of years when they consolidated and started adding fees. That’s because all that matters is price, and therefore it was essentially impossible for an airline to stop discounting to beat out it’s competitor’s price. So they always lost money, and always hoped that the government would be there to bail them out when things got really dire.

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By: PaulR321 http://blogs.reuters.com/felix-salmon/2013/11/18/when-airlines-dont-compete/comment-page-1/#comment-48633 Mon, 18 Nov 2013 16:59:30 +0000 https://blogs.reuters.com/felix-salmon/?p=22751#comment-48633 Airlines contribute to 7% of the GDP.
If all legacy carriers have failed after 9/11, so would aircraft manufacturers, airports, all airlines vendors, etc.

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By: PaulR321 http://blogs.reuters.com/felix-salmon/2013/11/18/when-airlines-dont-compete/comment-page-1/#comment-48632 Mon, 18 Nov 2013 16:58:10 +0000 https://blogs.reuters.com/felix-salmon/?p=22751#comment-48632 Felix, you definitely do not understand the economy in this country. Airlines contribute to 7% of the GDP.
If all legacy carriers have failed after 9/11, so would aircraft manufacturers, airports, all airlines vendors, etc.
Please do not post any of your idiotic articles any more.

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