Quote:
Originally Posted by Slava
Right, but that legislation means that they have to have these unprofitable routes on the books, right? No such issues would apply to a foreign carrier flying direct routes. So they could fly the profitable ones, drive down the prices and force AC tomlower theirs, thereby making a corporation with limited profitability even worse.
I guess it's a domino effect and I hate to use that as a way to predict an outcome, but it doesn't seem like much of a stretch?
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It helps WJA right now. For consumers it sucks because those unprofitable routes are propped up by higher fares elsewhere. Since WJA and AC exist in a duopoly, WJA also profits from those routes, because they can also charge more for other routes.