Thank you for the opportunity to help you with your question!
An executive airline would prefer to operate under a
regulated environment so that they can have an organized collusion. It appears
an inverse application of the winners’ line on assuming that people may choose
to fly at the lowest price if an airline undercuts all others by a dollar and
the other airline does the same thing. In this condition, the only way an
airline can draw customers is by loosing money. A regulated environment creates
more barriers to entry and that’s makes it harder for competition to stay in.
an airline may also require regulation to avoid wasteful expenses as a group.
Please let me know if you need any clarification. I'm always happy to answer your questions.
Aug 29th, 2015
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