Showing posts with label airline competition. Show all posts
Showing posts with label airline competition. Show all posts

Tuesday, November 25, 2014

Lion Rock 17: Photos and Discussions in Reading Club Salon 2014

Here are some photos of the Lion Rock Institute (LRI) 3rd Reading Club Salon (RCS) 2014 held three weeks ago in Hong Kong. Below, our group photo after the morning session, moderated by LRI Chairman Bill Stacey (seated, center). The afternoon session was moderated by Ken Schooland (seated, 2nd from left) of the Hawaii Pacific University. LRI Executive Director, Peter Wong, is standing behind Bill.

Milovan Djilas' book, "The New Class" (1957) was our take off discussion in the morning session. Bill asked something like, "Is there something in Marxism and its class analysis that makes it so appealing to the public and intellectuals?"


Among those who answered Bill's question was Feng Xingyuan (CASS, Unirule, CIPA, in Beijing), standing behind me in the above photo. He reasoned that the term "class" (Marx's capitalist class and working class) is misleading because there are now many "in-between" sectors in society like small entrepreneurs who are also workers and managers of their own small companies, so who exploits whom? 

I agreed with Xingyuan and added that  Marx’s class is indeed misleading and not useful, but Djilas’ concept of a "political class" is useful. Not only in national and local governments political class but also those in the international, multilateral and bilateral bureaucratic class. Good example is the UN, its attached or partner organizations and institutions, in pushing alarmism and more government intervention in crafting climate and energy policies.

Nick Smith (The Link, HK) added that aside from Djilas' bureaucratic class, there is also the managerial class,  An expansion of "class".


Fred McMahon (Fraser Inst., Canada) noted that with global competition, political nepotism has drastically declined in dispensing power and privilege in many countries.

Xingyuan added his observation that the Chinese government's power has increased, there is "methodological individualism", a class of people within the government doing detrimental things. An expansion of the concept of "class" may be ok but “class struggle” is not appropriate. More of “interest struggle” within governments, within businesses.


Here are some points by Djilas in Chapter 3, "The New Class". It talks about huge inequality between the ordinary citizens and the political class, the huge privileges of the latter, a capitalism "disease" that a communist society is supposed to correct, not continue and even exacerbate. This did not happen of course.


And a portion of Chapter 4, "The Party State". Djilas made a quick survey of Marx, Lenin and Stalin, their differences in personality, in one paragraph. Then  the expansion of the communist state under Stalin.


Djilas' book should be read or browsed by current socialists and bleeding heart activists, government and foreign aid bureaucrats and consultants. Their new mantra of "alarming social inequality" points to only one thing -- even bigger governments (local and national) and multilateral institutions (UN, WB, ADB, IMF, etc.) whose main goal is to further redistribute by force and coercion, the wealth and assets of the more hard-working, more efficient, more ambitious sectors of the planet.

This is a different "class" of people. They enjoy the products and innovation of capitalism and individual excellence, then turn around and demonize the free enterprise system, and call for more regulations on top of existing multiple and rigid regulations.

Sincere and non-envious scholars and researchers should not demonize capitalism  and high inequality. Rather, they should demonize policies that prevent the poor from taking advantage of the momentum of innovation and competition. Or create a culture of entitlement, dependency and mendicancy among the poor.

Thanks again to LRI for another stimulating, small group discussions.
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See also 

Thursday, April 10, 2014

Airline Competition 2: More PH Flights to the US and Europe

Today, the US Federal Aviation Administration (FAA) has granted a Category 1 rating to the Philippines for its compliance with international safety standards set by the International Civil Aviation Organization (ICAO). This means that Philippines’ air carriers can add flights and service to the US and carry the code of U.S. carriers. Good news.

A friend, Coco Alcuaz made this timeline in his fb posting today: 

US FAA lifts ban on PH, allowing PAL to add flights, Cebu Pac to start. Cebu Pac also due to get EU approval tonight. Here's a history: 
1998 Philippine Airlines ends flights to EuropeJan. 2008 U.S. FAA downgrades PH to Category 2 (no new flights)March 2010 EU bans all PH carriersJuly 2013 EU lifts ban on Philippine Airlines (PAL)Oct. 2013 Cebu Pacific starts first long-haul flight (Dubai)Nov. 2013 PAL starts flights to LondonToday FAA restores PH to Category 1Later today EU expected to lift ban on Cebu Pac

This move by the FAA is consistent with the US government's more liberal granting of US visa to PH citizens. The US government wants more rich and middle class Filipinos to go to the US and spend money there, help improve business confidence. If more Filipino travelers are prevented from going to the US by denying them entry visa, these Filipinos will simply go to Europe or other Asian countries and spend their money there. 

Hours after the FAA announcement, the EU in Brussels also announced that it has cleared Cebu Pacific to fly to European air space.

Many people here welcomed this development positively. And rightly so because of the huge new business opportunities that will be opened, especially in tourism, trade and investment.

More competition among more airlines flying PH-US and PH-EU would also mean lower fares, better service. Bad service and/or high fare by one airline will turn off passengers and buy their tickets for their next flight with another airline.
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See also: 
Airline Competition 1: Standing Room Flights, July 05, 2010 
Airline oligopoly, Philippine AirLines, September 16, 2011

Monday, July 05, 2010

Airline Competition 1: Standing Room Flights

A friend posted this interesting news report, below:
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http://www.telegraph.co.uk/travel/travelnews/7864921/Ryanair-to-sell-5-tickets-for-standing-room-only-flights.html

Ryanair to sell £5 tickets for standing-room only flights

Michael O'Leary, the airline's chief executive, will set out proposals today that include charging customers to use the loo.

A standing area with "vertical seats" will be introduced at the back of its fleet of 250 planes.

He said that charging customers £1 to make use of facilities would encourage travellers on one hour flights to use lavatories at the airport instead of on the aircraft.

The Irishman said he intended to introduce coin-operated loos and added: "The other change we've been looking at is taking out the last 10 rows of seats so we will have 15 rows of seats and the equivalent of 10 rows of standing area."....
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This is an interesting development in the process of capitalist competition in the airline industry. The competition among many airlines is pushing companies to provide more varied services at varied prices. Market segmentation works always. Those who want full comfort, they get business class seats and pay high. Those who economize, get economy class seats and pay the standard rates. And for those who want to economize further, get standing room ticket and pay even lower. There is a market for everyone, rich and poor, producers and consumers.

That's the beauty of free market capitalism. People accept inequality and they do not call for a revolution in order to have "equality for all." Governments, upon the prodding of the bleeding-heart groups, usually come in to correct the "market failure" of social inequity. And that's where waste, inefficiencies and corruption occur, and people's dissatisfaction in society and governments.