PPRuNe Forums - View Single Post - What happens if SAA goes
View Single Post
Old 17th Apr 2007, 17:27
  #35 (permalink)  
JetNut
 
Join Date: Mar 2007
Location: South Africa
Posts: 112
Likes: 0
Received 0 Likes on 0 Posts
Induldge me for a minute...think about this,

To a certain extent many have pushed for open skies, but have you ever wondered why countries are so reluctant. Even a free trade economy such as the EU are reluctant to a 100% open skies agreement, why? Strategic economic neccessity.

The South African government have been dabbling in fifth freedom rights. What does this mean... guys like Emirates etc, with their capital-might, can take over the Southern African skies over night. The government has considered this, do they really want another nation controlling a vital part of the transport system? I think not. Aviation is a whole new ball game as compared to other industries (retail, finance etc). This is a truly global business. Like it or not, carriers must do business with other nations so as to conduct normal business.

But, don't get me wrong, I agree with total open-skies (Adam Smith (and I think he's cool!) hit on a novel idea regarding international trade), if everybody played according to the same rules though, without dirty tricks and backstabbing (yanks famous for this). then, yes, it is the consumer who will ultimately benefit. But certain countries, such as the Gulf states, have very controversial business regulations as compared to ours (I bet Emirates don't pay for fuel in Dubai). Latent disparities could prove devastating for the aviation industry in SA as a whole.

So, you tell me, is a free trade system in the airline industry really feasible?
JetNut is offline