Pffft, nothing bad could ever happen when you consolidate from ~40 different companies down to 4. Nothing bad at all, including bubbles, financial collapse, or monopolistic pricing........
1. Asiana Airlines
2. Singapore Airlines
3. Qatar Airways
4. Cathay Pacific
5. Air New Zealand
6. Etihad Airways
7. Qantas Airways
8. Emirates
9. Thai Airways
10. Malaysia Airlines
Top ten airlines according to http://www.worldairlineawards.com/
American airline execs should maybe fly a few of these airlines and try to figure why they lag so far behind. I guess you could start with not nickel and diming every-f*cking-thing. Still if a tin-pot operation like Quntass can make the top 10 there's hope for you Yanks yet.
Of course they're the top 10 passenger's choice. They're government subsidized. That makes it really easy to provide great service and low (below cost) prices. Which is the very reason American airline businesses are dying. It is impossible as a fully private entity to compete against a subsidized one. So the US gov't just effectively subsidizes ours with bailouts and bankruptcies every few years... the worst of both worlds.
Because of the "national interest" in maintaining state funded airlines, there has never been and probably will never be, and good reason to invest in international air travel.
Of course they're the top 10 passenger's choice. They're government subsidized. That makes it really easy to provide great service and low (below cost) prices. Which is the very reason American airline businesses are dying. It is impossible as a fully private entity to compete against a subsidized one. So the US gov't just effectively subsidizes ours with bailouts and bankruptcies every few years... the worst of both worlds.
Because of the "national interest" in maintaining state funded airlines, there has never been and probably will never be, and good reason to invest in international air travel.
Asiana and Cathay are and always have been privately owned and operated. Qantas has been privatised since the early 90's and as far as I know receives no subsidies although I imagine government funded travel would be through Qantas but that would be the case in all countries. Whether the Australian government would let Qantas fail is another matter but purely a hypothetical as it (almost) always makes a profit. Anyway being government subsidised is no guarantee of a successful airline, look at JAL or Air France. Besides, none of the airlines on that list are particularly cheap, especially those thieving bastards at Qantass. I'm left with the idea that the people running your big 5 don't really know what they're doing.
Air NZ is not subsidized, it was privatised back in the early ninety's but is now 50% owned by the government as of 2006 or so, but receives no subsidisation, and it runs at a profit.
Actually I would make the argument that the government does subsidize the airlines, at least a little bit. I can remember vividly when my old man was still with the National Park Service, him bitching about how flying at the "government" rate was several hundred dollars more than what he could find tickets for on his own. I doubt this has changed. And you know how many service members I see flying back and forth on a daily basis? I know they have to get around somehow but I cant help but wonder if they are all paying the higher priced "government" rate.
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