Sunday, Jul 27, 2014 at 15:51
Don't let a thread upset you mate, no one here is saying private enterprise can't make a profit,
heaven knows they must or fail . . . just interesting comparing ferries around the country.
The other venture to KI (KI Ferries) failed for a number of reasons, but I recall mostly Sealink cut prices heaps in the lead up and start up, forced the other to compete at a loss (which eventually brought the failure on rapidly), and keep the market monopoly.
A rip off isn't when 'company X charges more the company Y who is either cheaper or offers more for the same price' . . . company X would be out of biz then due to market choice.
A rip off is where someone has a monopoly on a market and charges what they like (what the market will bear), or if there's a bit of collusion going on, ah la fuel company price monitoring / matching, and same thing in major duopoly supermarkets.
A rip off is often where a company is driven to make ever higher profits, to ensure CEOs / execs get big salaries, shareholders get increasing returns, and share prices maintain upwards trend.
KI ferry operator Sealink is listed on the ASX.
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