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Game with only two players brings instability

2008-04-11

Airlines say that economic processes in Lithuania could negatively affect the flow of incoming tourists. Inflation is pushing up prices in hotels, restaurants and other services. The number of passengers at Vilnius International Airport is still growing, however, with airBaltic and flyLAL competing for lead position. Tadas Vizgirda of airBaltic says that it is a child’s game to compete so bitterly for market share. He says that the main task is to build a market that is still immature, and that full competition should take place between many companies rather than just two players. He notes that competition as it is at the moment is simply leading to unhealthy market and pricing policy, increasing instability.

 

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