Stowaway
What Phil is getting at and a few others (me included)
1/ We do not mind competition if it if fair competition
2/ All start ups sell a £ for 80p in order to get market share. They
use their "start up capital" to finance this. Their start up capital is
obtained either by rich family members or "conning" financial institutions
3/ What Phil and I are bitter about is the way all start ups reckon they will
re-invent the wheel when it comes to aviaton. They talk about 10,20,30
aicraft. What they can not be told is that the charter maket is finite in
size, one simply cannot create a new market, only take from the
incumbents.
4/ So for the 2 or 3 years the start ups are selling £ for 80p the rest of
us have to compete in an unfair market. In some industries this
practice is known as "dumping" and is illegal, ie selling a product at below
cost. We all know what happens when the capital dries up and no profits
have been generated, yes you all say what a shame about the jobs and
shout at Phil!!
I think Phil is a little bit fed up at being told that he has not learned something from 20 years in this game!
As far as Blink is concerned I hope they survive because they will have learned a very valuable lesson in economics that the only thing in the long term that keeps a company alive is PROFIT. They should now be able to find a niche market and simply stay in that market. I have met some really good people from Blink (I cannot talk about their management) and I wish them well.
The real downside if Blink do not stay the course is that it will encourage yet another bunch of start ups with their amani suits, business plans and start up cash.
