Originally Posted by
TBM-Legend
comparing a government body with a commercial company is invalid from an economics analysis as the government can print more money, increase taxes and charges almost arbitrarily.
You didn’t mention that the big names behind Virgin 1 pulled the pin after major loses
777 Partners seems to have had a colourful past and many law suits over lack of payments
I never said 777 would continue to fund them, I said they can do what they want with their money. That could include continuing to prop up Bonza forever for whatever reason, or deciding tomorrow to fold it up and move on. Fact is they could be playing a corporate game we have no idea of, even less so as its not a public listed company. Same goes for Bain and PAG, they have money, lots of it, if they decide to keep throwing it at loss making entities that's their problem. The previous iteration of VA was stuck as a wedge for foreign operators to take profits out of the Australian market, as long as VA didn't lose too much money. It was also a thorn in QFs side, preventing total, unlimited control of the Australian domestic market and using that profit to subsidize competition in Asia.
Government assets are no different, if an asset becomes overly costly for no benefit to the public it generally gets shut down, like train lines were in the 80s. Now the government subsidizes private operators to provide public transport, and even roads, hence all the tollways.