Tuesday, February 12, 2019

TKC EXCLUSIVE!!! INSIDER: AIRLINE CARTEL THREATENS TO SPIKE COSTS AT PRICEY NEW KANSAS CITY AIRPORT!!!



Not only does the proposed new Kansas City airport threaten to borrow big bucks from taxpayers to start but also there's a question of how the proposed "deal" will impact local air travel.

To wit . . .

RIGHT NOW INSIDERS REVEAL HOW NEW KCI THREATENS HIGHER PRICES AMID DECREASED AIRLINE COMPETITION!!!

As usual, quasi-privatization by way of City Hall translates into nothing less than an opportunity for more corporate welfare paid for by locals and anybody unfortunate enough to pass through this cowtown.

Checkit:

Hello to The New KCI Air Cartel



KCI is selling a monopoly to the highest-bidding airlines cartel. Bait for air carriers to pick up four billion dollars of new airport bond debt. It’s part of a national trend turning medium-size airports like KCI into airline cash cows. Airlines achieve rising profits by driving up ticket prices at captive regional airports, off-setting lower prices at highly competitive major hubs.

“In other industries where a few large firms dominate (think Coke and Pepsi) they may still compete fiercely with each other in every city and town, but when consolidation occurs among airlines it often leaves local communities completely dominated by single carrier or cartel of common owners….This interlocking, common ownership structure of airlines, which is akin to the giant investment banking trusts that gained control of the railroads and other key industries in the late 19th century, means that even nominally independent airlines have strong incentives to avoid competing for market share. One study comparing fares on routes served by airlines with and without common owners finds that the horizontal ownership structure that pervades the U.S airline industry raises the cost of flying by 10-12 percent.”



Even the Feds are taking notice:

“The Justice Department notified the four largest airlines June 30 that it is investigating whether they are colluding to drive up fares by limiting the availability of flights and seats. Those four control more than 80 percent of the U.S. market.”

This case resulted in one of the New KCI players "flipping" on the other three airlines and paying a BIG MONEY settlement.

A “cartel of common owners” (Residual cost partners) can drive up ticket prices in a variety of ways. It can reduce flights to the most profitable routes. It can manipulate access to gates and baggage handling. Remember the curious report that a 20-million-dollar baggage system was stalling the KCI airline agreement? If you can force competitors to pay more for bag handling, you can make them charge higher bag prices, undercutting their ability to offer lower ticket prices. Likely this was a fight over who controls the new airport’s one-and-only baggage system, not the relatively trivial cost.

The city promises a signed airlines agreement will be in hand by Feb. 25. Eight airlines currently carry most KCI passengers. Let’s see if a substantially smaller number ink the agreement. If they do, that’s not a promising development for air travelers.
###########

Developing . . . 

36 comments:

Anonymous said...

Translation: Just a bit scam brought to you buy Sly & the james gang.

Anonymous said...

No competition between the airlines is a bad deal but keep drilling down. There's also not much competition among local construction companies and subcontractors. All of KC's political favorites. Hope they pick right in the mayor's election or they might be left out in the cold.

Scam City said...

I guess nobody is willing to talk about an airport redesign which would be much more cost effective and far less corrupt.

Anonymous said...

Airlines aren't going to be around for long, got the GND coming!

Anonymous said...

Timid town timid people, scared of sly james

Anonymous said...

Waste, fraud, and abuse at its finest by KCMO government.

Anonymous said...

Clearly airlines are running scared. The democrat party's new savior, AOC, will put a complete stop to their business model. Right before life as we know it ends anyway 12 years down the road. I wish I was just making it up, but one thing the Democrats do best, is scream in unison "we are unique, we have our own thoughts" right before parroting AOC's talking points.

Anonymous said...

Haha this getting pretty bizarre.




Anonymous said...

3:21, stop whining. I for one can't wait to take that high speed train from New York to Europe.

Anonymous said...

The local architecture community predictably mute. Wimps.

Anonymous said...

Take the street car to St Louis and catch a flight there.

Anonymous said...

Maybe they should call Bob Bernstein (West Edge) and put him in as a consultant.

Anonymous said...

Why are all the Mayor candidates silent on this corruption? Where are you Miller and Glynn? Co-Conspirators?.

Anonymous said...

^^^ They are using the standard evasion tactic hoping the public will forget as the dealing to ram this thing over the voters approaches. Have the media toss in a few tugging the heart strings and pride in city stories to distract.

Anonymous said...

Everything is AWESOME!!!


Kansas City, MO @KCMO
Feb 11

The City is inviting you to attend at least one of four public meetings set to talk about the budget being submitted for the 2019-20 fiscal year. Before the budget is adopted, you can let council members know which priorities you value most. February 19.

Tweet ur lunch meat said...

BIG SLY JAMES SEZ>>>>>


Mayor Sly James @MayorSlyJames


Mayor Sly James Retweeted Jolie Justus

Lots of time and effort went into this agreement. Thanks for your work on this Jolie. Now it’s up to us to get the paperwork done!

Anonymous said...

^^^ ROFLMAO woo boy

Anonymous said...

21st century Kansas City looted and pillaged

Disgruntled Taxpayer said...

Clay is looking better every day...

Anonymous said...

Translation: I wish I understood the marketplace but by using logical fallacies, innuendo and flat-out stuff I pulled out of my ass, I SURE DON'T!!!

But then, you guys will believe just about anything.

Anonymous said...

Translation: I'm a shill for City Hall who has to somehow justify this goat rodeo. I know, I'll ridicule the people who have actually noticed and not bother explaining anything.

Anonymous said...

Jolie eats a lot of pussy

Anonymous said...

No, he isn’t looking better. He resembles a chipmunk.

Anonymous said...

Some mayoral candidate could get a hell of a lot of votes by standing against the airport. Too bad they are all chickenshits.

Anonymous said...

Why is it the only candidate talking about the airport in any form is Clay Chastain

Anonymous said...

Why don't you guys form TKC AIRLINES, I'm sure with your knowledge and experience it'll be the top carrier in no time.

"Attention all passengers, we lied about our destination. You're not landing in Pittsburgh. You're landing in Albuquerque."

Anonymous said...

5:16 got knocked the fuck out
LMAO

Disgruntled Taxpayer said...

If we had a real newspaper, and TV stations that ran stories longer than 45 seconds, maybe the public would catch on to what a collosal horror this is.

Anonymous said...

Taxpayer Gulag

common sense said...

Where do I get my Clay Chastain's, or any other white taxpayer candidate's yard sign?

Gopher Casey said...

Flying is a privilege not a right. If you can't afford the ticket you don't get to go. Since when is the airline industry a welfare state for public transportation?

Anonymous said...

7:31

TKC is blocked on city wifi networks. Does the city also pay individuals to make comments here that counter TKC? If that's not the case in this instance, how would one answer the welfare state comment? How about this: For over a century, the government has said that transportation services, even if privately owned, are vital to public well being. Accordingly, these services are entitled to set prices based on fair competition. However, when airlines conspire to price fix, that's a crime. The government has recently prosecuted major airlines for price fixing. That's what we're talking about here.

Anonymous said...

This whole entire thing is a mess. Please email your council member to stop this and start over !!!


Scott Wagoner @ kimberly.randolph@kcmo.org

heather.hall@kcmo.org

teresa.loar@kcmo.org

dan.fowler@kcmo.org

quinton.lucas@kcmo.org

jermaine.reed@kcmo.org

jolie.justus@kcmo.org

katheryn.shields@kcmo.org

lee.barnes@kcmo.org

alissia.canady@kcmo.org

scott.taylor@kcmo.org

kevin.mcmanus@kcmo.org

Anonymous said...

3:11 the voters have "NO IDEA"!!!!!

Anonymous said...

9:06 Most of us on here dont live in your corrupt peice of shit city - KCMO, we just spend our money there on occasion,and pay your taxes because some of us work there, but you people who live in the city limits of KCMO need to get your shit together, for those of us that live in the burbs, you people seem to be the most retarded people on the planet as far as your voting goes!! I wouldnt take up residence in your city if my life depended on it!!! You people bitch about everything but arent interested enough to do something to change it - deal with it or move out!!

Anonymous said...

@12:11 is talking about and to the naive stupid council that pass these piss poor deals and policy through.