The Case for Re-regulating the Airline Industry
Over the past year we continue to hear dire predictions for some of the American airline carriers. In the case of US Airways, bankruptcy has become a reality. United Airlines may not be far behind. Ever since the airline industry was deregulated in the early 1980's numerous airlines have gone out of business. Some would say that it was merely a shakeout of an industry with too many players. After twenty years of deregulation it has become apparent to this writer that the industry cannot continue on its present course. The industry has been unable to balance competitive pricing, convenience and safety.
Clearly maintaining safety, be it maintenance of the aircraft or terrorism, is a first priority. None of this comes cheap. On top of this is the industry's biggest expense, salaries for its employees which are all unionize with the exception of SouthWest and a few other small carriers. When trying to balance fare price against safety and competitiveness in the industry, none of the major carriers a capable of doing it. Someone needs to set base ticket prices to insure all the carriers can continue to provide safety, convenience and a reasonable profit margin. To allow the carriers themselves to do this would invite price fixing.
The federal government, in the guise of the FAA, needs to step in and begin to add logic and reason to this industry. To not do so will someday result in the deaths of hundreds of passengers as a result of skipped aircraft maintenance in an attempt to save cost and this is a cost the American people cannot afford.
12/06/02 ( 457 )
© Copyright 2000-03 www.mypov.org - All rights reserved.
Post Your Views On This Topic