The Internet is a wonderful thing. While doing a bit of random googling I stumbled upon the strap line “Competition Policy for Small Economies” which seemed worth exploring to see what insight it could offer on the Easy Jet paradigm.
Well blow me down when I read the list of small economies who considered the globalization of policies favoured the big boys and didn’t take into account the needs of the little ones. As I read on I began to feel sorry for the down trodden small economies forced to apply theory that just didn’t apply to their nano economies.
I soon felt sorry for Israel, Switzerland, New Zealand and of course poor little Belgium for being forced into adopting policies which didn’t work for them.
How odd you may think. Adopting Global policies and theories seems to pose no problems or threats here in a far, far smaller economy. We happily spend large amounts on planet saving policies or appointing a competition regulator for markets too small to allow for competition.
Or is it time for us to remember that we are not a small economy, or even a very small economy we are a tiny economy? Even our nearest neighbour has an economy that is larger than ours and probably has a critical mass which makes comparison with them inappropriate.
Should we accept that rules that apply in the big world just don’t work at our sub atomic level?
I think that it exactly the mindset we need to regain. In the past we listened to experts who explained to us just how wrong everything we were doing was. In the past we would respectfully pay careful attention to them and then after they had gone would remark “Ah yes, but they are English, eh” and then design something that worked for Guernsey.
Even though our experts now are drawn from all corners of the globe I still apply the “but they are English” rule to all of their suggestions. Try it, it always works a treat.
For example when listening to Education presenting theory and data to support school closure silently say “Ah yes, but the theory and data is English” and then consider the argument from a purely Guernsey perspective.
When considering the Easy Jet application many will subconsciously be applying competition policy for large economies which is all that we ever have presented to us by global media. We take it for granted that free competition in a market is bound to make that market efficient. A fine theory which may even work in markets large enough to enable competitors to all make a profit.
How does that work in a market which has time and time again proven that it cannot support multiple operators? Who can name the airlines which have flown in like a lion and limped out like a dying duck?
Let’s apply a Guernsey logic to the application. We need Gatwick route which is essential to our economy. Only an operational airline can hold the slots which ensure that life line is permanently maintained. Other Airlines have demonstrated that protecting our economy is not in the best interest of their shareholders.
The market is not big enough to generate sufficient profits for airlines offering a comprehensive, regular scheduled service.
Allowing a second airline to compete against Aurigny may have short term benefits but ultimately will cost us more as tax payers paying an “insurance” premium to protect our slots.
Make your own decision but please apply the “but they’re English” test first and see if you change your mind.
The Horacle 