Category Archives: Airlines

Will the UK marginalize itself?

Bloomberg reports that the USA has offered the UK a more limited “Open Skies” agreement after Brexit than it currently has with the European Union. Even the British voters should now understand how disastrous Brexit will be for the UK. As could be expected - but apparently not by a tiny majority of British voters who voted for leaving the EU - the USA is using its standard template for aviation agreements in the negotiations with the UK. It will be very hard for the UK as a single country...
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Money makes the world go round

The USA has always been protectionist when it comes to aviation. Each year US airlines spend millions of dollars on lobbying members of the US Congress to preserve this protectionist stance. This is unfortunate because economists know that protectionism is detrimental to the economy. The world order built by the USA with European support and with free trade as an important building block seems no longer appreciated since the US federal administration has been taken over by the Trump organization. The USA’s public debt amounts to more than 100% of Gross Domestic Product...
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Good news for passengers

Emirates signed a Memorandum of Understanding (MoU) on January 18, 2018 to buy 20 Airbus 380s (and take 16 options) with deliveries to start in 2020. It is not only the world’s largest passenger plane, but also the world’s most comfortable passenger plane for 5 reasons compared to other aircraft. First, the humidity in the cabin is higher, so that you dehydrate in a slower pace during the flight. Second, the air pressure in the cabin is higher, so that you do not get tired too quickly. Both characteristics also...
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United agents need more training

United Airlines received a lot of negative publicity in 2017. The latest case is that of Jean-Marie Simon, a 63-year old attorney and school teacher who spent 140,000 miles for a first-class ticket. On a United flight from Houston to Washington, DC she is moved from her first-class seat to coach class to make room for Sheila Jackson Lee, a member of the US House of Representatives from 1995. When Simon wants to board the plane and shows her boarding pass, a United agent tells her she...
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A race against time

Even the British voters who voted on June 23, 2016 for leaving the European Union, should now know the truth about the Brexit’s consequences. They should understand that Boris Johnson was telling lies in favor of his own career. He was unemployed at the time of the referendum, but is now the UK’s secretary of state. At the time of the vote £1 was equivalent to €1.31, whereas today it is worth no more than €0.88. Thus, it lost 33% of its value since the referendum. Given that the UK imports half of...
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How to protect US airlines from competition

Free international trade has considerably contributed to the USA’s wealth. But the days when the USA was a champion of free trade are gone. Although the internal US market has been deregulated, there is no foreign competition. Non-US airlines are not allowed to fly domestic routes in the USA, while foreigners cannot own more than 25% of a US carrier. Due to mergers the US airline industry is no longer a competitive market, but an oligopoly. Thus, US carriers do not feel the pressure to offer quality products. Rather than improving their currently...
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