PPRuNe Forums - View Single Post - Private equity take-over for Virgin Australia?
Old 22nd Apr 2020, 10:24
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Toruk Macto
 
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[QUOTE=On eyre;10758988]It is very rare in any market to have equal shares between competitors- usually due to CEO egos and dick comparing contests one becomes dominant and draws a line in the sand in terms of their acceptable market share (as AJ has done). It is sometimes (perhaps always) wise for minor market share competitors to accept their allocated market share, concentrate on their efficiency and maximise their profitability. I cite a small competitive RPT market of last century in which Kendell Airlines held 2/3 of the Adelaide to Port Lincoln market and Lincoln Airlines 1/3. A few others came and went. There was no collusion but Don Kendell revealed that he would always prefer a competitor he could trust. In this case competition was always there but the customers benefited by the services provided.
Perhaps if the new no longer virginal airline would accept a QF drawn line in the sand without letting CEO egos get in the way it might be a win win for all parties - customers, staff, tourism businesses, shareholders and the government. Pipe dream ? Maybe but it might work also with a better use of all resource.[/QUOTE

Some airlines only trust a competitor they own !
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