Populism and desperation
Re: Govt. denies Virgin application
This decision by the Samoan government smacks of populism and desperation. Stopping Virgin Australia from landing in Apia will reduce competition and likely to result in higher fares for the paying public.
Is this really what the country wants?
Protectionism will come at a cost, which the ordinary punters will have to pay every time they kneel to the statue of nationalism and fly with their Samoa Airways.
This does not make economic sense or any sense for that matter. Protectionism has gone out of fashion in many parts of the world except in little Samoa.
I wonder whether the Australian government will step and try and “persuade” Samoa to change its mind citing the many reasons why our government should cave in including reciprocation (ie, not granting landing rights to Samoa Airways to Sydney and other Australian cities). Is this the type of tit for tat skirmish that Samoa wants to enter into?
We can whip the nationalistic fervour and run the emotive argument that we shall not be dictated to by other countries but the reality of matter is, Virgin Australia would probably fly into Apia in the near future.
There is heavy betting at the makeki about that outcome. When that happens I wonder what weasel words will come out of the government spokesperson explaining the change of heart.
In the meantime, Air NZ is laughing all the way to the bank because it will welcome back the old duopoly (as was the case with Poly) and charge whatever it wants to transport those nationalistic Samoans between Apia and Auckland.
As for me, I am happy to paddle my canoe to Savaii.