I normally don't comment on non-tech industries, but this one has been bugging me for a while.
I am a big believer that competition is great for consumers. Free markets promote competition and when competition gets too competitive, markets have a solution, companies get put out of business. Well it is time for the government to stop interfering with the free markets within the airline industry. For the second time in two years US Airways has declared bankruptcy.
Since coming out of regulation, the airline industry has proven inept at maintaining a healthy market dynamic. Airline after airline has entered into bankruptcy, and far to many have been allowed to clear their balance sheet and renter the market. US Airways should simply be put out of business and not allowed to emerge from bankruptcy. If they can clean the debt off their balance sheet and come out of bankruptcy they will simply be capable of entering into more price wars and force someone else into bankruptcy... and the cycle will continue.
No comments:
Post a Comment