Subject:
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Re: debate fodder from an unusual source...
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Newsgroups:
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lugnet.off-topic.debate
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Date:
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Tue, 15 Oct 2002 08:24:09 GMT
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Viewed:
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300 times
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In lugnet.off-topic.debate, Larry Pieniazek writes:
> This article makes the case against airline bailouts and airlines in general...
>
> http://www.fool.com/news/foth/2002/foth021010.htm
>
> I found the Warren Buffett quote particularly hilarious (his frustration
> with airlines and their service was part of why he was instrumentel in
> founding the pioneer fractional jet ownership company)... not that I would
> ever advocate initiating the use of force, mind you, but it was funny anyway.
There was actually a pretty good opinion piece, I think in the NYT
(but possibly in Newsweek), that discussed the disconnect between
air travel and train service. It laid out the numbers and pointed
out that since 1936, the airline industry has made a net profit of
$3 billion--FOR THAT ENTIRE PERIOD--counting the $5 billion that
they took as a bailout. And they've come asking for more. Amtrak,
on the other hand, is demanded to show a profit; virtually no rail
companies handling passengers do, and most rely on infrastructure
subsidies in any case. But Amtrak is being held to a standard that
if airlines were held to it would require their reorganization as
well. (From what I heard, the UK has renationalized
the rail infrastructure, which I think is a good move.) It may be
wasteful, but I'm of the opinion that mass transit requires some kind
of governmental incentive and central control (promotion of the
general welfare), because of their unique position relative to
other kinds of enterprise (which is something I've discussed in
other threads, but which I can't put a pointer to right now).
best
LFB
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Message has 2 Replies:
 | | Re: debate fodder from an unusual source...
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| Economist have a concept called "natural monopoly" which refers to a industry where the capital investment is so large that it is not in society's best interest for there to be one than one supplier. The classic example is the local power industry (...) (22 years ago, 15-Oct-02, to lugnet.off-topic.debate)
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Message is in Reply To:
| | debate fodder from an unusual source...
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| This article makes the case against airline bailouts and airlines in general... (URL) found the Warren Buffett quote particularly hilarious (his frustration with airlines and their service was part of why he was instrumentel in founding the pioneer (...) (22 years ago, 13-Oct-02, to lugnet.off-topic.debate)
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