Dollars and Jens
Saturday, July 09, 2005
again with the airlines
Government is preserving precisely what ails the industry — excess capacity. Suppose a major carrier were to go out of business. A salient fact about the airline industry is, Kelleher says, that "its principal capital asset travels at over 500 miles per hour." Which means: If one airline fails, unserved markets will be served swiftly. He notes that on the afternoon of May 12, 1982, Dallas-based Braniff Airlines — one of those that had urged government to strangle Southwest in its cradle — went out of business. The next morning at least five airlines started up on some Braniff routes.
George Will. I don't feel like repeating my rant.

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