Nama : Elvina Noviawanti

NPM : 120820210508

Link Youtube: https://youtu.be/36Iyuz6NNrc

This video discusses which one is better between intervention or open markets in the aviation
industry, with Chatib Basri as a speaker. Based on the discussion, I think the speaker used
positive economics, before explaining which one is better, he told the history that existed in
the aviation industry, starting in 1938 there was an intervention by an institution in the United
States that regulated all activities in the industry until it developed with an open competition
where airlines could regulate their activities
He also showed examples and implications of each regulation used in Indonesia with data and
facts. In 2015 the price of plane tickets was almost the same as train tickets, then the
Indonesian government issued several regulations concerning limits on ticket fares, but this
was not effective because it was related to flight safety. He thinks that open markets are the
better way to build competition. Airlines will compete to provide the best prices and services
to consumers. Not being ready to compete is not an issue, but we cannot ignore that there
will be sufferers from the competition, so a strategy is still needed to deal with this case.