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Let's Buy Spirit Air

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401–410 of 628 posts

Re: Let's Buy Spirit Air

#401

Earlier quoted context omitted.

Why does any of this imply they should become a regulated utility? This seems like a textbook case of the free market pushing prices down to cost. Having alternative revenue streams pushed that minimal price down; but even without that, there is no reason to think the market would have done anything other than push prices to the lowest level possible in that environment as well.

When a necessary service is pushed towards being unprofitable / breakeven due to "free market pressures", it probably should have some kind of backstop to ensure the service doesn't completely fold - because it is necessary. I think the suggestion to treat it like a utility was trying to emphasize this. I'd also feel similar I'd my primary water, electricity, or internet provider was on the brink of failing due to "f…

Consumer air travel is not a necessary service, though.

Re: Let's Buy Spirit Air

#402

Earlier quoted context omitted.

I like the EU model. The regulators set a "bare minimum" set of requirements. They have much better minimums that North America, and the fares are (still) cheaper per kilometer travelled. Also, I love the penalty system when flights are late.

"They have much better minimums that North America" Can you enumerate these? As far as I'm aware Ryan Air is basically more "Spirit" than Spirit Airlines.

For one, the penalty system for late arrivals. It is such a big business now, that there are whole businesses setup to advise you and do the work for the cut of the penalty paid. And that penalty system applies for trains too.

Also, look at Ryan Air (and Wizz Air) fares. They are consistently the lowest cost per kilometer travelled anywhere in Europe. Sure, it is like a flying bus, but it gets the job done, much cheaper than anything the US.

Re: Let's Buy Spirit Air

#403

Earlier quoted context omitted.

I kinda' like Ryanair as lowcost airline? They're fairly efficient (boarding, serving etc), they _actually fly_ the advertised flights (with relatively few exceptions), and the food is reasonably priced. During COVID they would just give your money back, no shenanigans like "they're in our company wallet". Sure they have their quirks but they don't seem to go out of their way to deceive you, they're pretty open about…

> During COVID they would just give your money back, no shenanigans like "they're in our company wallet" Generally I agree with your view that Ryanair is decent at what it does, but COVID refunds happened only after the regulator stepped in to threaten them over their original "no refunds" and then "refund in the form of a voucher, with a short expiry date on it" policies actually being unlawful, and even allowing fo…

In Romania I think they just gave back the money (or maybe it was on a voucher with "if you don't use the voucher by date X, we'll refund the money"). which is in stark contrast with how other low-cost airlines like WizzAir behaved. Perhaps it was regional policy; or perhaps it was due to their previous interactions with UK regulators? But for me, they gained a lot of respect for them back then (whereas WizzAir is on the "only if absolutely no other choice" list - and I think I only used it once, for a business trip where it had a good direct flight AND I didn't care if I actually made it to the destination, or if I got stranded there for a few days - since the company would've been paying)

Re: Let's Buy Spirit Air

#404
post #401

Earlier quoted context omitted.

When a necessary service is pushed towards being unprofitable / breakeven due to "free market pressures", it probably should have some kind of backstop to ensure the service doesn't completely fold - because it is necessary. I think the suggestion to treat it like a utility was trying to emphasize this. I'd also feel similar I'd my primary water, electricity, or internet provider was on the brink of failing due to "f…

Consumer air travel is not a necessary service, though.

How do you feel about high speed internet vs dial up?

Re: Let's Buy Spirit Air

#405

Earlier quoted context omitted.

These have remained unresolved questions, for me, for decades. When an internet pal was trying to found a libertarian (what noun should I use) locale, in Awdal in Somaliland (that detail of whether it was really in Somaliland or not was more debatable at the time), he first founded the Awdal Roads Company. https://web.archive.org/web/20040603010444/http://awdal.com/... So obviously there are theories about how these…

You’re missing the vital framing. You’re welcome to strawman the strawman but the respond with yet a third: “I’m not able to pay for it and will die as a result”. I’d prefer to live in a society where we avoid as many situations like that as possible. It’s the primary purpose of a government and a nation. Solving the problems of aggregating the required parts? Again it’s why we work together and it’s the point of gov…

So you're saying it's all about the concept "vital" and I should pay that more heed? But I don't think the term "vital" solves the problem of information. Natural, vital, optimal, feasible, wanted, it's all the same question, which is, uh, "how should we specifically cooperate," I guess. Government just knows less about this than the people involved do. Hayek yek yek.

Maybe you mean that in desperate situations - such as working out what to do about roads - we might as well resort to government. We do, so I guess you're right.

Re: Let's Buy Spirit Air

#406

Earlier quoted context omitted.

> We should just naturally have the natural things that we naturally want, supplied by pixies. Is this how you see roads? Are we entitled for wanting those to be paid for by the state? What about the police? Should we have to pay whenever a police officer stops a mugging -- or is the wage of that officer, too, supplied by pixies?

These have remained unresolved questions, for me, for decades. When an internet pal was trying to found a libertarian (what noun should I use) locale, in Awdal in Somaliland (that detail of whether it was really in Somaliland or not was more debatable at the time), he first founded the Awdal Roads Company. https://web.archive.org/web/20040603010444/http://awdal.com/... So obviously there are theories about how these…

> and "rent-seeking", whatever defines that really.

"The act of growing one's existing wealth by manipulating public policy or economic conditions without creating new wealth." This is in opposition to profit-seeking, where "entities seek to extract value by engaging in mutually beneficial transactions." https://en.wikipedia.org/wiki/Rent-seeking

Friend, with respect, the mental blocks you're coming up against regarding roads, police, and resource distribution, within an American libertarian framework, are outlining exactly why American libertarianism (unregulated capitalism) is an untenable ideology.

Private roads don't make sense in capitalist framing because there's no possibility of competition - no market for a free hand to move in. Furthermore, there's ethical issues around the fact that roads won't be built to people who aren't as instrumentally valuable to capitalism, which is in opposition to the idea that all humans are equally intrinsically valuable. In plain words: poor people won't get roads built to them, won't be able to work, will get poorer. This is bad, and if you want to just be selfish about it, will lead to crime and social discohesion.

This argument extends to all the resources governments typically involve themselves in: electricity, sewage, water. We have direct evidence that when they try to privatize these things, it goes horribly wrong: see, the American healthcare industry, or, what's happening to the UK as it privatizes sewage. See the Texas privatized power grid.

All capitalist entities (corporations) are simple algorithms: Make profit go up. We like to tell ourselves that making profit go up is possibly only through mutually beneficial trades, aka the aformentioned profit-seeking, however that's not true in practice. The most profitable activity is slavery driven labor, and the most profitable state for a corporation to be in is monopoly. All optimized capitalist behavior selects for and trends towards that activity and that state, and literally the only way to stop this is through establishing some kind of hierarchy that allows for the limiting of corporate behavior - governments, and regulations.

Any example you give of a corporation in capitalism not trending towards slavery or monopoly has one of several explanations. 1. It's regulated, 2. It's led by someone who ethically doesn't want to trend towards slavery or monopoly, or isn't intelligent enough to do so. In the case of 2, that company will eventually be surpassed and consumed by someone with less morals, more intelligence, and more capital (more power).

> "We should just naturally have the natural things that we naturally want" somewhat unironically. I feel that way, the same as anyone else. The difficulty, as observed up the thread, is in working out what's natural, or vital, or wanted and feasible.

I completely agree, and there are other ways to do this other than capitalism, regulated or otherwise. I strongly recommend the most cited economist in history: Karl Marx. Peter Kropotkin is also very good, "The Conquest of Bread" is a great speculation of alternative systems.

Re: Let's Buy Spirit Air

#407

Earlier quoted context omitted.

That's one free round trip international flight per year in a lot of cases. Plus sometimes other benefits like theft insurance, warranty extension, phone insurance, etc. You're subsidizing everyone else if you're not trying to get the best loyalty program.

> You're subsidizing everyone else if you're not trying to get the best loyalty program. Quite the mentality...

Welcome to capitalism. Do you refuse to buy items on sale at the grocery store because they are subsidized by the more premium items? Do you refuse to buy the rotisserie chicken because it’s a loss-leader priced to get you into the door?

You’re taking a 2%+ loss on every purchase if you’re not playing the game. But you better carry debit cards and cash because some vendors charge extra for credit cards, and some charge extra for using cards at all!

Re: Let's Buy Spirit Air

#408

Earlier quoted context omitted.

A more fair assessment would be: company runs a utility => they need to be a regulated utility! The core part of air travel doesn’t really feel any different to a bus or metro or train. Off the tarmac then yes it absolutely feels like a Verizon store, as does some of the in-flight service, but there’s always been this weird feeling as a traveler that every carrier is basically the same thing but with different decals…

Have you ever flown spirit or any of the other ultra low cost carriers? It very much is a different experience than flying a legacy domestic mainline carrier. I’m not alone amongst people i know who will happily fly the cheap seats on United/Delta/AA but won’t even look at a ticket from Spirit or Frontier even at a significant discount. Compare it to a flag carrier like Singapore air and it is a shockingly different…

I think Spirit has the most comfortable seats out of all the ones you listed. Especially if you're lucky enough to have a row to yourself and get to lie across all three of them.

Re: Let's Buy Spirit Air

#409

Earlier quoted context omitted.

Because the amount anyone would actually pay is substantially below cost for most routes, but it's still a service that many people depend on (either directly or by the indirect economic impact of travel). It's a genuine force multiplier that is unaffordable without being subsidized; making it a utility would just shift the subsidy from credit card points programs to the government.

If airlines didn’t exist, people and goods would continue to move around the globe as they have done for thousands of years. There’s nothing magical about air travel (or any other transport mode) that makes it worthy of subsidy .

> people and goods would continue to move around the globe as they have done for thousands of years.

Would love to compare the economic throughput in raw dollars of the Oregon trail vs a single flight route.

Don't forget that the whole point of transportation under capitalism is enabling and stimulating economic activity. So sure, get rid of the airlines if you want to collapse a bunch of economic activity. Personally I'd hope for it to get replaced by high speed rail, but kinda hard to do that when economic activity is highly depressed.

Re: Let's Buy Spirit Air

#410
post #224

Earlier quoted context omitted.

It’s not enough to “make a profit”. Southwest has 30B in assets and makes $441M in profit. Like most airlines it’s a miracle of modern economics and should practically be considered a charity or a nonprofit. You would make more in treasuries or corporate bonds.

Wow… at 1.5% annual return wouldn’t they be better off just renting those assets (aircraft) to other airlines?!

The majority of airliners are on 'dry lease' to their respective airlines to begin with.
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