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by switch007 832 days ago
In reference to the EU legislating, Amazon will just seek/get revenue gains elsewhere. It won’t be immediate, it won’t be obvious, but it will happen.

Take EU261, which caused issues for smaller airlines, leading to less competition, increased fares. There are also claims it’s affecting safety [0]. I’m not against EU261 per se, but it’s healthy to be critical of large institutions like the EU.

People, I find, cheer about new EU legislation but then forget to look think about any consequences a few years down the road.

Where is the EU’s own critical evaluation and performance review of EU261, especially given it’s been heavily revised through case law over the years?

(FWIW, I live in Europe, I’m generally pro EU, but it’s not all roses)

[0] (obviously some bias given it’s the ERAA) https://www.eraa.org/sites/default/files/era_eu261_study_bro...

2 comments

Right it shifts prices around, but reduced the lock-in. No regulator cares that Mercedes are more expensive than Kia. Regulators will be interested if Mercedes charges 30k to reset the car for resale or some other silly analogy
Before EU261, the passanger took on the risk for delays and cancelations mainly due to the operational performance of the airline. After, the airlines now directly take on some of that risk. I'm of the opinion, that if airlines did this well in general, or the industry had a reasonable solution in place, such regulation would not have been made in the first place.

So, if it caused issues for smaller airlines and generally increase in prices, is that not a clear indication that the smaller airlines do not have sufficiently capability to handle it, and that prices was too low?