DHS Security Control May Improve Airport Economy

It turns out that banning water on airplanes may help improve the vendor economy in airports. The idea is simple. Since passengers may not carry water onto airplanes when boarding, each flight airport hop benefits because passengers need to re-purchase drinks when they land and exit the aircraft.

Bottom Line: The costs of the ban on liquids are falling on customers; the benefits are falling on airports, vendors and bottled water companies. With these incentives — and lobbying realities — we are unlikely to ever see a return to the good old days (allowing people to carry water). I guess that the terrorists have won 🙁

Sources: Economist David Zetland by way of TNR.

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