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by dforrestwilson1 3352 days ago
I think you might be underestimating the impact of slackening demand. Emerging market airlines put in a ton of orders over the past 10 years, now we're seeing them slash airfare prices and/or cancel orders due to continued pressure. You can also point to state-owned/supported enterprises in the Middle East and China which are terrible allocators of capital and have therefore encouraged the glut. Nevermind the strategic imperative of the U.S. and Europe to have exclusive access to a producer of worldwide transports during times of war.

There are many examples of duopolies who do just fine. I think you are ignoring the negative influence of ambitious countries in this industry.

2 comments

Just FYI there are still markets out there [1] and Boeing is going to try to take advantage of them [2].

[1] http://www.latimes.com/world/la-fg-iran-airlines-snap-story.... [2] http://www.npr.org/sections/thetwo-way/2016/06/21/482955544/...

What are some good examples of duopolies that do well for both of the players and the market?