Originally Posted by
globalexpress
Also, could you explain how the unions and US airline are "paralyzed" when it comes to these matters of flags of convenience and state subsidized airlines possibly encroaching US markets?
It's not TPs job to educate you, he has given you the data to research. Simple enough.
What he is referring to, is the unions and airlines are looking for government intervention in dealing with this issue. Ain't going to happen. As I have said before the US airlines have been encroaching on others' territories for decades. How about when start ups begin in the US, cities give tax relief and fee waivers to obtain the cheaper service? Somehow the big boys compete.
With 100s of airlines that have failed since deregulation, one would have thought the government would have done something about that. Look up what was supposed to have been compensation for airline employees being without jobs...in the original language of deregulation. The gov just turns it's head and says it's good for the consumer.
With all this I am saying, the route of government being the final arbitrator of this, is a failed route. If the unions and airlines are to be successful in this perceived threat, they MUST compete whether it's a level playing field or not. And they can. Most now have the financial ability to truly up their game.
The European airlines have to compete with the Ryan Air and EasyJet juggernaughts, of penny fares , etc. The legacies that have adapted are doing quite well. I have DH on BA and Lufthansa and their short haul mainline is so much superior to DAL, AA, USA, and others. They had to learn to compete. Service vs backpacking fares.
Finally, the major advantage US airlines have is their Frequent Flyer programs. Buy a box of cereal on their credit card and you get FF mileage. Do not underestimate that deal. Is that fair to the start ups or foreign airlines (unless they are part of the alliances)?
It's like Boeing vs Airbus. Boeing complains about gov assistance for Airbus, and Airbus complains about massive defense contracts Boeing receives. Who's got the level playing field.
All I am trying to impart is that looking for the government to step in is a waste of resources. The legislators will see only better service and equal or cheaper fares for their constituents.