thanks, but you're not going to get me to agree w/ re-regulation for the following reasons:

1. it's not right (morally, in a free country)
2. it's not more safe. air travel has been far more safe in the de-regulated environment than it ever was under regulation - mostly because the industry is still HEAVILY regulated (too much so). there's an even stronger incentive to cut COSTS under regulation than under de-regulation - any business will (or at least should) be a profit maximizer. under regulation, the only way to maximize profit is to cut costs. this is due to the fact that the only way to grow or increase revenue under regulation is with the "regulator's" permission - which leads to all kinds of political perversions, etc.
3. several airlines have made plenty of money in the de-regulated environment. the airlines that have suffered are the very ones that existed in the regulated environment. they grew fat, dumb and happy under regulation - thus suceptible to lean, mean entrants.
4. this WILL BE NO UPSTARTS under a regulated environment - if a regulating authority sets higher than market fares to "ensure a profit," the only way they can do so is to either:
a. provide a cash subsidy (courtesy of the taxpayers) to the "chosen" carrier
and/or
b. give that carrier a monopoly on a given route
5. you better bet LOTS of pilots will lose their job under regulation where airlines are granted monopoly power along routes so that they can cut capacity. regulation would be GREAT for those lucky pilots who get to keep their jobs, but would basically suck for your unemployed "brothers" (not to mention the american consumer).

the fundamental problem i pointed out (that the marginal cost of carrying another passenger is nearly 0) is not insurmountable - but it does require business discipline. i think that's the reason you see less last-minute internet/email fare sales than you did in the 90s. as far as re-selling goes, it's entirely by choice. for instance, sx seems to have completely avoided it (and will continue to do so, i would bet).

if anything, the industry is too regulated. i think landing slot allocation is a perfect example of what results from regulation.