|Quoting slider (Reply 11):|
Governments have no business running airlines, period.
Governments run most other forms of mass transportation and their goal is to provide that service to the taxpayers. Also in most countries it is the government that provides the funding that allows an airline to operate. Also the airlines have to adhere to many government mandated regulations that have been put in place often at the cost of human lives.
Also how many completely private airlines are soundly profitable in the long term?? If you want to invest your money somewhere do not put it in airlines, esp long term.
IMO even EK
is expanding too fast to be sustainable in the long term it just seems like an airline bubble. I just don't see how EK
's business model brings long term success especially with increased gulf competition. Maybe it will because stranger things have happened.
|Quoting SEPilot (Reply 53):|
They are not subject to competition, which is the only thing in the known universe that will drive efficiency.
Define efficiency? is that a company that maximizes profit, or the company that decides what is in the best interest of it's citizens.
Also consider that US health care costs are about double what it is in other industrialized countries and you achieve much inferior outcomes relative to them. One of the biggest arguments against a public option in the US healthcare system was that it didn't need to make a profit and therefore had a competitive advantage because it could charge less. If I lived in the US I would wonder what the heck would be wrong with that because I would save money with the government option.
|Quoting Baroque (Reply 67):|
There is absolutely no reason why a government owned enterprise cannot be structured in such a way as to be a much sounder organization than one that is run by a board that take notice mostly of institutions that have no long term interest in the fate of the companies they invest in. Sometimes not beyond a few minutes and seldom beyond the next reporting season.
Darn tootin' Alan!!
If Australia had what you proposed then the taxpayers (aka voters) just need to pay more attention and when they are unhappy show that could show at the polling station if a government program isn't working for them as it currently functions.
In the current situation basically no Aussies have any control over the fact that the current board of QF
wants to turn it into JQ
. They only care about those shareholders and not what aviation services are best for Australia.
|Quoting Baroque (Reply 67):|
Average time a share sold over the ASX is held is 20 minutes. And that system is good for a company?
It's not it usually leads to very unsustainable decisions.
Many are critical about what Canada does regarding EK
(I am a Canadian despite the flag) but I do theorize that the Canadian government understands that letting EK
will letting EK
have unlimited access to Canada will lead to a decrease in competition in the long run and our aviation policy dictates that.