Don't start an airline if you want to be rich

Unless you are the CEO, I guess.

From the American Government Accountability Office (pdf) comes this chart of revenue, expenses, and profit in the US aviation industry:

Revenue in the industry has grown almost non-stop for the last 40 years, but expenses have more than kept pace. Only for a brief period in the 1990s did it look like flying passenger planes might make money, but that was derailed by the 2001 crash. As Matt Yglesias comments:

Some things that work as technology don't work as a business model. The Concorde was like that. An engineering marvel that couldn't make money. But... basically the entire passenger aviation industry in the United States is like that.

It's worth remembering as well that international flight isn't much better. Most of the industry is dominated by nationalised (or recently privatised) prestige carriers which can't be allowed to go bust due not only to their stranglehold on their domestic markets, but also through simple national pride. What would be interesting to see is whether that's a cause or an effect.

After all, if the all-encompassing British Airways had gone bust one of the first seven or eight times it ought to have in a proper market, perhaps the rise of the low-cost carriers (who do in fact make a profit from flying planes) could have happened a bit earlier. Or maybe government intervention was the only thing which allowed the aviation industry to mature enough that anyone could make a profit at all.

(via Richard Layman)

A Lufthansa plane takes off from Frankfurt. Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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Donald Trump vs Barack Obama: How the inauguration speeches compared

We compared the two presidents on trade, foreign affairs and climate change – so you (really, really) don't have to.

After watching Donald Trump's inaugural address, what better way to get rid of the last few dregs of hope than by comparing what he said with Barack Obama's address from 2009? 

Both thanked the previous President, with Trump calling the Obamas "magnificent", and pledged to reform Washington, but the comparison ended there. 

Here is what each of them said: 

On American jobs

Obama:

The state of our economy calls for action, bold and swift.  And we will act, not only to create new jobs, but to lay a new foundation for growth.  We will build the roads and bridges, the electric grids and digital lines that feed our commerce and bind us together.  We'll restore science to its rightful place, and wield technology's wonders to raise health care's quality and lower its cost.  We will harness the sun and the winds and the soil to fuel our cars and run our factories.  And we will transform our schools and colleges and universities to meet the demands of a new age.

Trump:

For many decades we've enriched foreign industry at the expense of American industry, subsidized the armies of other countries while allowing for the very sad depletion of our military.

One by one, the factories shuttered and left our shores with not even a thought about the millions and millions of American workers that were left behind.

Obama had a plan for growth. Trump just blames the rest of the world...

On global warming

Obama:

With old friends and former foes, we'll work tirelessly to lessen the nuclear threat, and roll back the specter of a warming planet.

Trump:

On the Middle East:

Obama:

To the Muslim world, we seek a new way forward, based on mutual interest and mutual respect. To those leaders around the globe who seek to sow conflict, or blame their society's ills on the West, know that your people will judge you on what you can build, not what you destroy. 

Trump:

We will re-enforce old alliances and form new ones and unite the civilized world against radical Islamic terrorism, which we will eradicate completely from the face of the earth.

On “greatness”

Obama:

In reaffirming the greatness of our nation we understand that greatness is never a given. It must be earned.

Trump:

America will start winning again, winning like never before.

 

On trade

Obama:

This is the journey we continue today.  We remain the most prosperous, powerful nation on Earth.  Our workers are no less productive than when this crisis began.  Our minds are no less inventive, our goods and services no less needed than they were last week, or last month, or last year.  Our capacity remains undiminished.  

Trump:

We must protect our borders from the ravages of other countries making our product, stealing our companies and destroying our jobs.

Protection will lead to great prosperity and strength. I will fight for you with every breath in my body, and I will never ever let you down.

Stephanie Boland is digital assistant at the New Statesman. She tweets at @stephanieboland