Any economist will tell you that true price reduction comes from increased productivity in competitive marketplaces. In all the discussions here we are focusing on regulation to increase competition. I think there is hope of increased price competition from productivity increases.
From JetBlue (a risky? startup) to Southwest (a proven niche player) they are attempting productivity inhancements and market segmentations. They might work afterall. Are there any ideas on how we can encourage productivity through public policy and consumer behaviour?
Ofcourse, not having true openskies agreements prevents well balanced marketplaces. I think as consumers we should demand more opening up of routes. I respect the labor perspective and pilot union concerns but there is a limit at some point -$300K to $400K a year is something you should be earning based on productivity not distorting market through limits on carriers competing freely globally.