Earlier quoted context omitted.
> However, as a realist I realize that the barrier to entry for airlines is very high and competition is sub-optimal. Is the barrier actually high? (I see new airlines every so often.) What are the actual barriers? If they're govt, why isn't reducing the barriers the right response? > So I'd settle for a government mandate of how high commercial airlines can fly. And govt would get it right because that's what they d…
Is the barrier actually high? Besides the obvious cost of acquiring multi-million dollar jetliners (which, if bought new, typically have to be ordered 5-10 years in advance of delivery) and signing leases for gate space and hiring ground crew at airports and so on? You also need FAA and TSA approved operations plans, adding for instance the cost of screening all your employees and equipping your planes with things li…
One webpage I found suggests the lease price for a 737 is between $50,000 - $100,000 per month (which seems reasonable, or maybe a little low). Wikipedia says YouTube's bandwidth costs are estimated at $1M per day, so the hardware cost of a couple aircraft doesn't seem all that expensive.
(Disclaimer: I know almost nothing about commercial aviation.)