If Melbourne had unlimited capacity for flights, yes. But that’s where the free market stuff tends to fail in reality, it works if you assume a market without natural limits, but not otherwise.
There are slot limits that regulate that. This is just a policy to benefit domestic airlines while encouraging flights to airports other than Sydney and Melbourne.
slaacaa@lemmy.world 8 months ago
Don’t you worry, I’m sure the free market competition will sort it out any minute now…
/s
realharo@lemm.ee 8 months ago
But wouldn’t a more free market in this case let them do more direct flights to Melbourne without requiring the extra leg?
The extra leg is only added to get around a specific kind of regulation of the market, it wouldn’t exist otherwise.
gmtom@lemmy.world 8 months ago
If Melbourne had unlimited capacity for flights, yes. But that’s where the free market stuff tends to fail in reality, it works if you assume a market without natural limits, but not otherwise.
realharo@lemm.ee 8 months ago
But a free market solution would be the airport increasing its prices until the demand at those prices matches how much capacity they have.
w2qw@aussie.zone 8 months ago
There are slot limits that regulate that. This is just a policy to benefit domestic airlines while encouraging flights to airports other than Sydney and Melbourne.