Forum

After corrupt merge...
 
Share:

After corrupt mergers taxpayer subsidies to keep air service in 200 starved communities skyrocket three fold to more than a quarter of a billion dollars  

  RSS
ahappyelite
(@ahappyelite)
Silver

Obscene corporate welfare shakedown in a wholly corrupt industry by two parties owned and operated by big money:

seat subsidies in the $100s per seat for an industry that has made profits of $70 billion

https://www.enotrans.org/etl-material/federal-government-subsidize-air-service-small-communities/

Quote
Posted : May 15, 2019 1:18 pm
Counsellor
(@counsellor)

Amazing information!

Sort of like a modern-day Rural Electrification Administration (established in 1935 to provide subsidies to bring electric power to the rural areas far from cities).  I suppose a case can be made that now-a-days access to air travel is essential for progress and the economy (I know, AOC wouldn't approve).  

ReplyQuote
Posted : May 16, 2019 12:24 pm
ahappyelite
(@ahappyelite)
Silver

it is the cartel that has actively conspired to destroy service from these places.  Clearly, government should sell routes in a package with some money losers bundled with the ones that are lucrative.

This post was modified 2 months ago by ahappyelite
ReplyQuote
Posted : May 16, 2019 12:35 pm
Counsellor
(@counsellor)

I think that (bundling profitable routes with loss-making routes) was tried before the rounds of mergers and consolidations that left us with the legacy three plus Southwest.  Didn't seem to work although I don't remember why.  Maybe because the margin of profit even on the profitable routes was too small?

Now that A4A has solved the profitability riddle, maybe it's time to try again.

ReplyQuote
Posted : May 18, 2019 11:41 am