Should The U.S. Be Re-regulated?

Fri Jun 22, 2001 12:41 am

This is a touchy issue, but do you think that the United States air system should be re-regulated?

I think it should be, because ever since de-regulation, airline service has plummeted and fares have skyrocketed. Air travel in the U.S. is more like an endurance marathon than a way to get from A to B.

Well, tell me your opinion.
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RE: Should The U.S. Be Re-regulated?

Fri Jun 22, 2001 12:45 am

No, it should NOT. We don't need to government controlling everything. Also, if you adjust for inflation, ticket prices are less than they were before deregulation.
"There is no victory at bargain basement prices."
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RE: Should The U.S. Be Re-regulated?

Fri Jun 22, 2001 12:53 am

Bring back the hated CAB?
Have govt dictate which airline should fly where? Have govt fix rates based on predetermined averages? No way. Let the market take care of itself like it should.
Govt. regulation is necessary for safety measures, thats all.

We pay less today for airfares than ever before. Yes, we dont get meals on flights, but who cares for a pile of mystery meat. Air travel is an endurance marathon not because of deregulation but because of airport constraints and the subsequent gridlocks they cause.
Atheism is Myth Understood.
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RE: Should The U.S. Be Re-regulated?

Fri Jun 22, 2001 1:04 am

No, no, and no! Deregulation has brought far more benefit than cost to American consumers, businesses, and communities. The numbers tell the story: fewer than 300 million Americans flew in 1978, and over 660 million flew last year. That's growth far beyond what economic and/ or population growth could possibly account for.

Ticket prices are actually far lower *on average* than below deregulation, adjusted for inflation. THis brings us to the one real inequity of deregulation, which the market has still not adequately corrected on its own. Most of this benefit is in major markets.....medium and small size communities unfortunately don't see lower ticket prices unless Southwest comes in to hold the Six Families mafia cartel acccountable.

The bifurcated airline industry that has resulted from deregulation has distributed its benefits unevenly. The high-cost, high fare Six Families and similar carriers reach down to the smallest of air markets (with help of regional affiliates) but gouge for the service. The low-fare carriers pick and choose a few medium-size markets and make everyone else drive, an inequitable outcome which for now is unavoidable. No one seems to have come up with a profit formula for economically and consistently bringing low-fare service to small communities, and the medium-size communities not served by Southwest.

The Six Families enforce this inequitable situation by predatory practices, which shut down the free market. So the only "regulation" that is needed is stiffer predatory pricing and capacity-dumping amendments to the Sherman Antitrust Act. The outcome of the USA vs. AMR suit shows that tougher capacity dumping standards especially are needed. The government must vigorously protect the level free market playing field.

But beyond that...the government should not re-regulate the industry. That only protected high fares and high cost structures. Deregulation has been a winner, and its weaknesses can be corrected over time if ingenuity and the free market are kept open and allowed to do their work.

Need a new airline paint scheme? Better call Saul! (Bass that is)
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RE: Should The U.S. Be Re-regulated?

Fri Jun 22, 2001 1:07 am

Absolutely NOT.

Goverment should stay away from micromanaging our lives. They should take care of ensuring air travel safety, and that conditions for competition exist.

RE: Should The U.S. Be Re-regulated?

Fri Jun 22, 2001 2:21 am

As Bill might have said (under the right circumstances) "it depends on how you define deregulation".

IMHO, deregulation is a misnomer, a distortion foisted upon the population to believe somehow this system of commercial aviation is no longer government regulated and instead reacts to pure market forces. It simply ain't so.

DCA-ROCguy makes some very good points, and I totally agree with the idea of more substantial antitrust enforcement by the government. That, in the big picture, is the only meaningful input the government can provide to protect citizens...both for fare-payers and new commercial interests.

CAB served its purpose at a time when governments around the world were helping to build an industry of the future (and the huge economic developments associated therewith). But, in its last decade, CAB followed the path of nearly all over-matured regulators, becoming a protectionist tool for those they were intended to regulate. In this sense, the legal changes of 1978 were a good idea, and long overdue. The result has been a new dynamic that has opened the doors (despite barriers such as the Wright Amendment) for SWA, JetBlue, et al.

Before we fairly consider reregulation, we need to achieve true deregulation. We are nowhere near there yet.

RE: Should The U.S. Be Re-regulated?

Fri Jun 22, 2001 2:26 am

NO!! This would hurt the industry!

RE: Should The U.S. Be Re-regulated?

Fri Jun 22, 2001 4:10 am

Fares have dropped, that's what added competition produces. And I think the REST of the world needs to de-regulate. Imagine all the new routes and low fares. Sounds good to me.
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RE: Should The U.S. Be Re-regulated?

Fri Jun 22, 2001 4:20 am

If you think that airline management can screw things up, it's nothing compared to what the government can do.

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RE: Should The U.S. Be Re-regulated?

Fri Jun 22, 2001 6:17 am

I have to really agree with Jim here on this one, his observations seem to be right on the ball.

From my observations in the last decade of the CAB regulation become more and more a system of political cronyism and favoritism, airlines in favor with the CAB or powerful senators or the administration got what they wanted.

Right now we have enough tools, like the Sherman Anti-Trust Act, to help encourage competition and prevent monopoly and oligolpoly. We just need some political will to make it happen. Which seems to be needed for pretty much everything in Washington these days.

I think the original point Kona was getting at is airport overcrowding, though I could be wrong. But as things are snowballing close to gridlock the market will revolt and costs for airlines will become too expensive to continue the trend of pushing the airport infrastructure over-capacity. Until local and federal governments, the airlines, the unions, airport neighbors and all associated parties come to some mutual understanding that they need to come to some sort of solution not much will happen.
Stop drop and roll will not save you in hell. --- seen on a church marque in rural Virginia
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RE: Should The U.S. Be Re-regulated?

Fri Jun 22, 2001 8:38 am

re-regulation would be a big mistake!! I actually have a united schedule from 1975 and airfares are not much different on many routes. if you adjust for inflation, they would actually be less in many instances. Overall, deregulation has been more good than bad and putting the govt in charge would be problematic
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RE: Should The U.S. Be Re-regulated?

Fri Jun 22, 2001 8:50 am

I say get rid of all noise abatement policies.
Bring back the Concorde

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