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Competition is Good for the Consumer

Economics 101 says “Competition is good for the consumer,” or at least that’s what I was taught early on in life.

But it also means a bit more work for the competing companies. Which is perhaps the reason some are questioning Southwest Airlines’ desire to use the Hobby Airport for international flights to Latin America.

Southwest is willing to pay for an international terminal along with a customs area, but they’re running into roadblock after roadblock both from United Airlines (who is currently the only airline in the area offering flights to Latin America) and from some members of the Houston City Council.

Some believe that if Southwest is allowed to pursue this venture then the price of airline tickets will go up. But with no competition, doesn’t United have the advantage to set prices anywhere they want?

Additionally, wouldn’t a new international terminal at Hobby create more jobs and drive fares down due to the competition between the two airlines?

I guess there is always two sides to every story, but I still believe that competition is good for the consumer. And I’m a consumer.

Christopherson Business Travel

Christopherson Business Travel

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