Re: Industry Changes

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From: "Travel Pages" <travelpages@xxxxxxxxx>

Sent: Tuesday, September 28, 2004 8:34 AM


> There's solid evidence that Continental's below-cost pricing during their
> bankrupticies distorted fares, forced other carriers to compete, again
> below cost.
>
<snip>
 CO used the bankruptcy laws to gain an unfair advantage by selling --
regularly and deliberately -- below cost.  You use investment bankers to
finance that kind of corporate behavior, not shareholders.
>
> This has left a scar on the industry still felt today.  The CO bankruptcy
> totally destroyed any hope for a rational realignment following
> deregulation, you know, what a free market is supposed to insure?
>
> A market isn't free when it is subsidized by a court decision at the
> expense of other competitiors.
<snip>

Where did the money to keep Continental flying come from?   Certainly not
from the competitors, and I doubt from the Federal government.   Bankruptcy
often wipes out shareholder's equity, which is supposed to be at risk in a
"market economy".  But the funds to keep operating and grow have to come
from sources open to all the airlines, don't they?

Gerry
http://www.pbase.com/gfoley9999/
http://foley.ultinet.net/~gerry/aerial/aerial.html
http://home.columbus.rr.com/gfoley
http://www.fortunecity.com/victorian/pollock/263/egypt/egypt.html

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