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Australia, it's time to deregulate the skies

By Jonathan J. Ariel - posted Friday, 12 June 2015


In addition to promoting their kingdoms, both airlines are also in the business of developing infrastructure and generating employment.

Is there anything wrong with an airline being a not for profit businesses? In what textbook does it say that businesses must have a single objective: profit?

Can we really hold it against them that the goal of some airline bosses is to return a different kind of "dividend" to shareholders?

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Every government spends money somehow promoting its brand.

Australia contributes to the nation's economic prosperity by spending $250 million through Austrade around the world extolling the virtues of Australia through guiding, supporting and directing Australian businesses. And this results in Australian firms getting business where others may not because their countries do not spend hundreds of millions promoting its brand.

Our military is spending $400 million per annum promoting democracy and the safety of Iraqis by helping Iraqi forces extinguish Da'esh terrorists as quickly as they can.

We are not spending these sums to make money. We are spending it because it promotes our values, our businesses and above all, our brand: Australia.

The Gulf Arab states are doing the same. They are ploughing billions of Dirhams into their tourism related infrastructure including airlines and hotels to promote their sheikdoms. No more, no less.

As is their right.

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QF and VA may whinge that EH, EK and QR are competing "unfairly". But who are they to define what is and what is not "fair" when their definition impacts destructively on the wallets of 23 million Australians?

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About the Author

Jonathan J. Ariel is an economist and financial analyst. He holds a MBA from the Australian Graduate School of Management. He can be contacted at jonathan@chinamail.com.

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