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Showing posts with the label Competition

Flights of fancy

Of all the markets in the markets in the world, one of the most nonsensically regulated is the air travel market. Countries are still clinging on to the antiquated notion that somehow national interests are involved in the aviation sector and “national airlines”, however dinosaur like they may be, must be propped up. This post is prompted by the news that Germany has asked Emirates to raise its business class fares for flights out of Germany. Emirates, faced with big fines, has been forced to raise its rates by some 20%. Airlines flying in and out of Germany are policed by the unfortunately named Federal Office for Goods Transport. This august body has written to Emirates saying it was “not allowed to engage in price leadership" on routes out of Germany to non-EU countries. Apparently it was acting under a law used in cases where "public transport interests are being permanently damaged". Apparently European carriers can indulge in “price leadership”. Only non EU airli...

Change rules to win

I am delighted to present a guest post by Adesh Sidhu. Adesh runs his excellent blog Not being Sarkari . He is a "Customer Advocate, Apple fan, Desi and an avid reader". He writes passionately on customer service - his blog carries many excellent posts. Thanks Adesh for your post that follows Big boys make rules. Big boys want to rule the world by the rules they have created. They have created rules, which are convenient to them, and these rules serve as entry barriers to new players. For so long music industry worked on royalty and record labels were operating by the rules, which they have created. From music creation to marketing of music to enforcement of copyright, record labels handle everything. Singers and musicians were depended on record labels for their success. Record labels were the big boys and rules they created were suited to them. Customers had to pay whatever price record labels decided. If record has only one good song, customers also had to pay for 7 below ...