Obi-Wan wrote:
expansion and contraction in the market is a natural cycle. It is when
government is in the election mode and wants to fix something for votes
that it gets screwed up. Look at the the up starts like, Southwest, Jet blue,
Air Tran. Some smart young fella will come in and grab the market by
the tail and make the big boys take notice.
I don't understand what election year has to do with the current case of price collusion, to me it's pretty obvious that it's a combination of less and less competition and power players in the industry restricting competition and agreeing on what to charge.
Unfortunately it's getting harder and harder for those competitively priced start ups to gain access. The huge companies that result from mergers have plenty of cash and political influence to deny access to competition. It's happening with Southwest at Hobby Airport
http://www.journalgazette.net/article/2 ... 6/1031/BIZ , Peoples Express, which is trying re-enter the market as a low cost carrier is running into the same problem.