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Old 5th Feb 2008, 09:22
  #776 (permalink)  
groundhand
 
Join Date: Feb 2007
Location: UK
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Paarmo

In principle I would agree your sentiment when relating to large businesses covering wide areas, however, there are lots of examples where monopolies work well in small market areas and, DTV IS a SMALL market area.

Free market competition does not always raise standards and does not always reduce prices.

At DTV a monopoly would:
Raise prices - marginally, yes it would happen but it HAS to happen to allow the ground handling companies to invest in people and equipment. Currently the rate of return (way less than current interest rates) means that they pay minimal wages so have difficulty in attracting and keeping good individuals and have no money to invest in good GSE to improve the service to their customers.

Reduce service levels?
Hard to imagine that this would happen. A better resourced unit is better prepared to deal with the issues that come their way. This comes down to the unit is managed; and good management costs money.

Just the thoughts of someone who has a few years 'doing the business' at airports.

GH
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