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Personal finance observation, musing and decisions in a journey toward financial independence by 36 with at least $1 million.

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China's Not-Quite-Free Skies





The bargaining power is important for the relatively small airlines in China.

From Wall Street Journal:

Industry experts, including a number of Chinese airline executives, say for all its drawbacks, centralized purchasing offers some compelling benefits. It lets Beijing pool orders to maximize bargaining power with the plane makers. And it lets the government regulate the growth of its airlines, which are eager to swell their fleets to boost market share. So far, Beijing has been able to prevent the carriers' capacity from outstripping passenger demand -- a mismatch that is afflicting the U.S. airline industry.

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