Newsstand - Re-Deregulate the Airlines

http://www.nationalreview.com/nrof_comment/gessing200508150848.asp

Despite heavy traffic levels during this summer’s tourist season, the airline industry is expected to lose at least $2 billion in 2005 alone. Such a performance may not surprise most stock analysts, who consider the commercial aviation sector to be “cyclical” in nature, but the “cycle” for most airlines all too often seems to run from bad to worse.

If the financial woes of the airline industry continue re-regulation may become a reality.
The government would give us higher prices but on the upside we may again see people carving roast beef at 30,000 feet!

One of the biggest issues is overcapacity on many routes due to multiple airlines offering service. It is an unfortunate probability that some airlines will either go out of service or, more likely, merge with others which will consolidate many routes, reduce capacity, and allow fares to rise to more cost-sustainable levels.

http://www.nationalreview.com/nrof_comment/gessing200508150848.asp

Despite heavy traffic levels during this summer’s tourist season, the airline industry is expected to lose at least $2 billion in 2005 alone. Such a performance may not surprise most stock analysts, who consider the commercial aviation sector to be “cyclical” in nature, but the “cycle” for most airlines all too often seems to run from bad to worse.


Re-deregulate is just one of many options

someone mentioned prices above the cost
but that cost includes highly regulated union contracts at at least the pilot and mechanic level

why shouldnt that be looked at before or in conjunction with re-regulation

the same argument can be made for the $1 million dollar salaries
or the 40 hour work months

i prefer to let people and companies risk their intellectual and financial capital

i have $39 fares between iad and ewr, how long will they last? I have no idea, but i ejoy them now

ultimately (in my opinion) we are made better by letting unprofitable ventures fail and letting the next entrepreneur try their ideas

ultimately (in my opinion) we are made better by letting unprofitable ventures fail and letting the next entrepreneur try their ideas

Amen!

Let the free market weed out the unprofitable.

I'd like to see the federal government not only stop propping up unprofitable airlines but also get the hell out of the airline business completely except to provide very limited oversight.