Foreign companies and individuals—think Richard Branson and Virgin Atlantic Airways—are forbidden by U.S. law from owning more than 25% of a domestic airline. That’s why Virgin America could be sold last year to Alaska Airlines over the express wishes of Virgin’s famous founder: He just didn’t have enough votes. With real competition comes real failure, hopefully followed by bankruptcy and even liquidation, instead of American-style too-big-to-fail bailouts. The differently headquartered are banned outright from servicing routes between two American cities, a practice with the sinister-sounding name of cabotage. But that’s precisely the point: With real competition comes real failure, hopefully followed by bankruptcy and even liquidation, instead of American-style too-big-to-fail bailouts.

Source: Los Angeles Times April 13, 2017 11:01 UTC