PPRuNe Forums - View Single Post - Qantas must break unions: Ryanair co-founder
Old 21st Jan 2007, 03:13
  #54 (permalink)  
Chimbu chuckles

Grandpa Aerotart
 
Join Date: Jun 2000
Location: SWP
Posts: 4,583
Likes: 0
Received 2 Likes on 2 Posts
The main problem with free market theories is that they rarely work in the real world...the people running things HATE competition and do all in their power to destroy competition in the short term so they can reap the benefits long term...the current mania of M&A is an example of this.

Outsourcing is a sick joke...generally speaking the only way to justify outsourcing is to artificially jack up the percieved costs of keeping it in house to make it look like huge savings can be made...I have seen it happen first hand and the justifications were easily countered with reality...the reality was ignored by 'management' and they went ahead anyway with predictable results.

Short term results from unfettered access across the pacific might benefit consumers to some degree but in the end it would likely return to the status quo as competitors dropped out and returned assetts to routes where better margins existed.

Look at what happened when VB came into the Australian market to 'keep the air fair'...we still have an effective 'two airline' situation, if not policy.
Chimbu chuckles is offline