The truth about airlines and competition
Re: Something needs to be done
You seriously can’t believe that allowing Virgin to compete with this new one airplane Samoan airline that this would result in lower prices for customers. Virgin would put the new airline out of business within 6 months.
Come on Kevin. I thought you were a businessman. Samoa needs its own airline if it tourist industry is to get going. It has not done well, as you have pointed out, relying on foreign airlines.
As you know I do not like the PM, but on this he is correct.
Doing whatever it takes to create an autonomous national airline, with the help of Fiji is Samoa’s only hope in the future of actually having a tourist industry they control. This is all Samoa has.
They have no exports, so to let someone like Virgin control their tourist industry would be stupid, just plain stupid. They can lower prices themselves when they have more planes.
To think that airfares will be cheaper with Virgin than with Samoa is just foolish. Airfares are expensive; it’s not like taking a bus. From where I am in Canada to Hawaii or Mexico is on average 500 to 1000 CAD return depending on the season, flying out of either Vancouver Canada or Seattle USA, with competing airlines.
This would be a similar flight from NZ or Australia to Samoa return. This is a pretty standard price for a popular flight at these distances. All this nonsense that Virgin would have any interest in competing with Samoa airline is just that, nonsense, they would eliminate it.
The airline industry is one of the most cutthroat businesses out there. Samoa cannot compete. Other than in the US the majority of countries airlines are nationally owned airlines that are taxpayer supported.
Even countries like Canada find it hard to compete in the air industry and Air Canada is heavily subsidized and has had to be given hefty government bailouts in the past, which I assume is the case for Air NZ, Fiji Airways, Qantas, British Airways, Air China and etc...
Actually did Virgin already take Qantas over?
I think I may have heard that, but I could be wrong on that. I think all the people arguing for competition for Samoan airlines in the hopes that they will get cheap air travel are living in a fantasy and they need a reality check on what airfares cost and what the reality is about competition in the sky.
It doesn’t exist.
I bet the C.E.Os at Virgin are just salivating listening to all you people arguing for Samoa’s Airline to try to compete with them. I can just see them silently twisting their dastardly moustaches waiting for the Samoan people to hand them over their airline.
Then they will jack up the prices when they have absolute control. Richard Branson will probably celebrate this latest take over by buying an island in the South Pacific to match the island he owns in the Caribbean.
If the Samoan government and the Samoan airline C.E.Os can be honest and keep their fingers off the cash, Samoa’s new airline stands a chance with Fiji’s help.
If they can’t be anything other than the corrupt theieves some have been in the past then they may as well let Virgin control their tourist industry and their airline. Time will tell.