Sponsor Message:
Civil Aviation Forum
My Starred Topics | Profile | New Topic | Forum Index | Help | Search 
Is It OK For Politics To Control Orders?  
User currently offlineHkgspotter1 From Hong Kong, joined Nov 2005, 0 posts, RR: 0
Posted (12 years 3 months 3 weeks 4 days 19 hours ago) and read 1998 times:

What do you think ?. Is it OK for a country to block orders for brand A to protect brand B which is built in their own country ??

This is a VERY SERIOUS question. As you can see from a few current topics at least two airlines have had their orders blocked.



4 replies: All unread, jump to last
 
User currently offlineSTT757 From United States of America, joined Mar 2000, 16892 posts, RR: 51
Reply 1, posted (12 years 3 months 3 weeks 4 days 19 hours ago) and read 1992 times:

If the airlines in question are State owned and not private or publicly traded companies, than sure.

State owned entities are not subject to free trade.

Take Amtrak for example, the US Government owns Amtrak.

They can tell Amtrak what company to buy trains from, and who to do business with. Simple as that, same with Airlines.





Eastern Air lines flt # 701, EWR-MCO Boeing 757
User currently offlineTrvlr From United States of America, joined Feb 2000, 4430 posts, RR: 21
Reply 2, posted (12 years 3 months 3 weeks 4 days 19 hours ago) and read 1980 times:

I guess it all depends. If a country pressures a carrier to buy aircraft which don't fit into its business strategy, then that would be an example of political pressure as a detriment to the airline.

However, if a government pressures an airline to order a certain type of plane which fits well into that carrier's fleetplan, then I personally don't see too much of a problem with the practice.

Aaron G.


User currently offlineEA CO AS From United States of America, joined Nov 2001, 13699 posts, RR: 61
Reply 3, posted (12 years 3 months 3 weeks 4 days 19 hours ago) and read 1969 times:
Support Airliners.net - become a First Class Member!

"OK" is actually a very relative term, here.

Would it be ok for the U.S. government to strong-arm Northwest out of buying Airbus planes? Absolutely not. They're a viable, strong company in a free-market economy and can do what they want.

What about USAirways, when they're desperate to get government-backed loans? Perhaps it's ok (if they needed mainline jets) to push for a Boeing order over an Airbus order, seeing as they're seeking loan guarantees, and that such an order would result in more jobs for American citizens (at both Boeing AND USAirways), and in more taxes for the government. There would definitely be an air of nationalism behind it, though.

How about a totally government-subsidized carrier, like Air France? (They're still gov't owned, if memory serves) It would definitely be appropriate for the French government to try and swing an Airbus deal over Boeing...but again, "Nationalism!" would be the cry.

So is it ok to bring politics into the equation? Yes. No. Maybe. It depends. THERE'S your answer.  Smile



"In this present crisis, government is not the solution to our problem - government IS the problem." - Ronald Reagan
User currently offlineMcdougald From , joined Dec 1969, posts, RR:
Reply 4, posted (12 years 3 months 3 weeks 4 days 18 hours ago) and read 1958 times:

It's not desirable.

First, any competition between the two plane makers on the merits of their products goes out the window, and is replaced by competition based on who delivers the greatest benefits to the politicians. Politicians might be frequent fliers, but they get rewarded for being popular or admired, not for making smart, long-term decisions or delivering a good return on investment.

Second, it's a form of gambling with taxpayers' money. If a government pushes an airline to buy a certain type of airliner, you can bet there's taxpayers' money behind the scheme. Every so often, the government will end up betting on a turkey, possibly even against the airline's best interests: remember how the British government pushed BEA to buy the Trident when the airline preferred the 727?



Top Of Page
Forum Index

This topic is archived and can not be replied to any more.

Printer friendly format

Similar topics:More similar topics...
Is It Possible For Boeing To Offer B777-300F? posted Thu Oct 12 2006 04:02:56 by AirCanada014
When Is It Time For A 732 To Retire? posted Sun Aug 7 2005 02:21:22 by Fpofllflyboi
Why Is It Cheaper For Me To Transit Another....... posted Mon Apr 29 2002 22:40:06 by Ammunition
Is It Real For SU To Move To Dme? posted Wed Jan 30 2002 13:08:17 by Aeroflot-777
CX888 To Vancouver, Why Is It Delayed For 2 Weeks? posted Sat Jul 1 2006 23:33:57 by Ktachiya
Is It "Safe" To Book US Airways For Feb./March? posted Wed Nov 24 2004 21:35:44 by PanAm330
Is it ok to put laptops through the scanner at security? posted Mon Feb 9 2004 07:17:58 by American757
Is There Room For AC To Fly Nonstop YYZ To KIX? posted Thu May 18 2006 04:05:46 by AirCanada014
It's Time For THY To Divorce Worldinfocus! posted Mon Feb 27 2006 18:12:26 by Bahadir
Gulf Air; How Is It Working For Them? posted Sun Jan 8 2006 02:17:10 by SWISSER