What are the economics/business structure that make the airline industry so fragile (bankruptcies, bail outs, etc)?
In: Economics
The bailouts themselves make businesses willing to take larger risks as they know they will be bailed out.
Also, in America we have a quarterly profit model of business. Meaning the CEOs are not concerned with the long term viability of their company only boosting shrot term profits to maximize their own bonuses and return shareholder investments.
Latest Answers