Originally Posted by
pbarnette
Translation: I want premium service, but there is no market for it. Therefore, I would re-regulate and raise prices for all, despite the fact that the overwhelming preference of the population at large is for cheaper flights, even at the expense of service.
And, frankly, I think the market is working just fine. The legacy carriers are in a bad way because they took too long to adjust to the market and came into it as bloated hunks of mismanagement. They never bothered to learn what customers really wanted because, in a regulated environment, they never had to. Those carriers that have consistently focused on delivering what people actually want (as opposed to what they say they want) actually do ok.
There is a sustainable model for the airline industry, it just happens that you don't like the model.
The
Airplane Geeks Podcast had Darryl Jenkins, author of The Handbook of Airline Economics, on their podcast last week. He mentioned quite a bit about the legacy carriers resting on their laurels over the past 20+ years since deregulation and are only now trying to innovate. The interview is quite interesting, and begins at 45 minutes in if you don't want to listen to the news.
Key quote from the episode: "The airlines need to innovate, liquidate or consolidate, the pain is just beginning."