[AR] Re: Rocket Labs
- From: Norman Yarvin <yarvin@xxxxxxxxxxxx>
- To: arocket@xxxxxxxxxxxxx
- Date: Thu, 17 Sep 2015 12:21:07 -0400
On Thu, Sep 17, 2015 at 03:27:26AM +0100, Peter Fairbrother wrote:
First, that the reason why airlines make little or no profit is because
they have too much investment, because other forces - which I will
consolidate under the term NIG, for "National Interest and Glamour" -
invest at least partly for non-financial reasons, and their investments
support competitive zero-profit pricing.
I too once thought that, but I've since run into a good argument that
the main cause is a strange interaction between union law and FAA
rules which gives pilots' unions so much power that they can gobble up
all the profits:
http://philip.greenspun.com/flying/unions-and-airlines
There is no reason for this particular disorder to propagate into
spaceflight. And even when it comes to airlines, while it means you
should avoid buying stock in an airline, it's fine to buy stock in the
leasing companies which own the planes that the airlines fly.
--
Norman Yarvin
http://yarchive.net/blog
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