There's no point in waiting three weeks and then going around the same arguments in the hope that they've been forgotten.
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Originally Posted by bobw Isn't that the point? A government intervention to install high speed rail between the population centers may have undesirable side effects on the rest of the state. |
So what you are saying is that all the routes outside of the planned HSR system are loss making. If they weren't, then there would be nothing to worry about.
As I have said above, we have a good HSR system in Europe, from Sweden down to Spain, but as yet it only covers a minority of routes. It hasn't stopped low cost airlines previously thriving in the good times and still winning out against the flag-carriers in the current economic climate (some have made losses in the last six months, but the incumbents have made bigger losses).
Airlines like Ryanair have been ruthless in culling unprofitable or unsubsidised routes and I'm sure SWA would do the same. If those routes weren't profitable, they would have gone by now. Therefore I am sure that they will survive, even if HSR takes others away. The airlines' gross profits may be hit a little, but the routes will still be there to serve people with no choice.
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Originally Posted by bobw Governments do things for reasons other than economic. That's the point of government. It's dangerous when government plays in the game against private enterprise. It cheats. Let's restrict the government to its proper role as umpire. |
Government needs to step in when there is market failure. If you think that air travel can continue to grow unchecked and all that matters is driving down the cost to the end consumer, then you probably don't think there is market failure. If you think that we need to move to lower-carbon transport and that the status quo of the airline industry and big oil is preventing that, then you probably think that intervention is necessary.
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Originally Posted by bobw And so you illustrate my point. |
And you seem to have missed or chosen to ignore the point in post #95.
- By your own words it is ok for governments to subsidise the capex for airports.
- By your lack of words I presume there is no disagreement over the government subsidising highways to the tune of tens of billions per year.
- We've heard no disagreement over the government subsidising 'essential' air routes.
- Yet, for some reason it is wrong for rail to receive any seed money, capex subsidy or operational subsidy.
I don't follow the logic.