Cartels and Hubs (Airlines in general)

Member Name: Waikie

Product:	Airlines in general
Date:	31/03/01 (38 review reads)
Rating:

Advantages: Erm - !

Disadvantages: Oligopolistic control

Ever wondered why you have to go to stansted or luton to get a flight to some obscure place? Because dominant airlines control Heathrow and Gatwick and only fly to the profitable routes.
Ok it makes sense - why would they not!?

Similarly when flying on highly competitive routes into North America - new entrants are priced out of the market (Laker Air) etc.

It's all about dominance, and whilst it may seem justifiable to ensure profitability - it does all seem rather mean.

The worst abuse of this is antitrust laws in the US - where a US airline teams up with a European one to offer internal connecting service in Europe or the US on routes only they can fly.

The US struts about 50 new bilateral agreements it's made with developing nations - yet won;t allow european airlines access to domestic routes within the USA (cabotage). It's clear that protectionism is an unavoidable consequence of global domination by airlines - but when a new starter is ruthlessly priced out - or often by more underhand tactics such as illegal state subsidies and manufacturer bias - it's going too far.

I used to work at a leading European airline - and just from where I sat i learnt all sorts of things about big business - things i'd rather not know.

Unfortunately all I can tell you as a prospective member of the flying public is to do your best not to get ripped off, look around for the smaller airlines that DO offer better fares than the established encumbents, oh and don;t forget to buckle up - it's going to get bumpy.

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