[TulliusCicero]

If it's price dumping or heavily government subsidized I suppose not, but if they're just more competitive then I don't see the issue.

Realistically I just don't think that's gonna happen, if they have to abide by local labor laws.

[zoky]

I mean, in principle I agree with you. If Qantas or Lufthansa can come in and run things cheaper and better, I have no problem with letting them try to compete on the open market. But just like I wouldn’t want a US government owned airline to operate in competition with private carriers, I think it would be unfair competition to allow foreign governments to come in and operate any sort of ostensibly private company in the US, particularly one that provides a critical infrastructure service.

The even more difficult question is how to tell whether a foreign company is truly private or is secretly receiving government funding. With no way to collect tax information or audit the books of foreign companies operating in the US, there’s no way to tell.

I don’t think it’s inconceivable that China could set up a shell company to operate super cheap flights on, say, the west coast, with the express purpose of causing that market to collapse, leading to a domino effect as US carriers start to fold. Maybe it would work, and maybe it wouldn’t, but consider that the annual revenue for domestic carriers in 2022 was about $160 billion, and profit was about 1% of that. Given that China’s military budget is estimated at $230 billion, it doesn’t seem at all out of the realm of possibility to me that they might well try, entirely legally, undermine the US economy.

I’m not saying cabotage laws are the only thing preventing this scenario, or that it couldn’t be dealt with should it become apparent that it’s happening, but I think it’s definitely something to be consider when discussing the possibility of opening up any domestic market to foreign competition.

[int_19h]

> I wouldn’t want a US government owned airline to operate in competition with private carriers

Why not? Ironically, that is the ultimate solution to the problem you're describing - if we consider this market so critical and so easily disrupted, then having a government-owned service provider that focuses on long-term availability of basic services over profits is a sensible precaution. Private airlines can still compete by offering more/better service for more money, or cheaper service due to less overhead.