1024px-Boeing's_commercial_aircraft_in_BBJ_livery

Ever so slightly off the freight topic, but this is a fascinating short piece in The Economist on airline competition. It notes that rival airlines with shareholders in common, for example a mutual fund, might be discouraged from normal market measures like a price war to lure customers from one airline to another. The shared ownership is, in essence, anti-competitive. And the study that highlighted this issue, discovered that routes run by airlines with shared ownership had higher prices – 3-5% higher, in fact. As the article rightly points out, this creates something of a headache for the authorities. Should you restrict share ownership? Or ensure a competitive market for consumers?

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