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The Aviation Intelligence Reporter
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Aviation Intelligence Reporter November 2024
- Taxing Times for Frequent Flyers
- How do you Solve a Problem Like Significant Market Power?
- Never Mind the Competition, the Real Challenge is Competitiveness Brussels: Where Artificial Intelligence Meets Real Stupidity
- Spatial Equity and Economic Leakage: Cutting Out the Middleman
- Regulators Gotta Regulate: The Case for Letting the Market Decide
Friends
Another month, and for an industry that is in a holding pattern as to fuel sources, regulators and market conditions, we were pretty busy. In Brussels, you had better learn how to spell competitiveness, because that is the word of the month. Failure to note the need for competitiveness will score you down, obviously. No, I am not convinced that everyone knows what it means, but hey ho!
This month the C word was front and centre for two different former Italian Prime Ministers’ reports and two different trade associations’ most recent public launching of what they hope will be agenda-setting documents. Given today is Halloween, it will be up to you to work out which is the most scary. There is also a call afoot to tax frequent flyers at rates that most certainly look scary, and DG COMP wants to work out how to assess significant market power when it comes to airlines, by looking at their slot holdings. Their power over airports remains unanalysed.
We also spent some time at the far end of the trade association puddle… sorry, pool, and found a couple that are doing interesting things, as well as working out ways to eliminate the middleman. In tourism, local communities keep only 20% of the money spent. Eliminating the intermediaries is a calling very close to the heart of the airlines too, and the A4E put out a good paper this month about the issues surrounding the new distribution channels.
Fortunately for these associations AI might be there to help. Or not… Finally, we look at the question of when is too much regulation the impediment to getting free of regulation?
As ever, we welcome your feedback,
Regards
Andrew
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