Originally Posted by
Rightseat Ballast
Socialized? Let's all fear regulation! Obama is out to dress us in red!
This industry only thrived during the period of regulation. It has been a downward spiral ever since. Heck, regional jets would never have had a market before deregulation occurred. Once deregulation happened, more competition arose. As competition came, air fares began to drop. Revenue margins dropped while pilot wages continued to climb for 20 years. Air fares then dropped to unhealthy levels as larger airlines tried to undermine smaller airlines, with the assumption that revenue from less competitive markets would offset the losses in key battleground markets. Revenue continued to decline, wages went up because the unions still were operating in a pre-deregulation mindset, and fleet renewal and appearances were neglected in trying to make ends meet. Here we are.
Our industry needs regulation. I agree with the notion that air travel should be treated as a utility. What we need even more than duty and rest regs now is regulated revenue. Airlines have not been able to set healthy price levels due to free market laws. If minimum air fares are set by the government, revenues will stabilize (relatively), and the airlines can focus on providing a safe product and and exceptional labor force again. Lack of regulation is why we suffer!
Be careful what you wish for... I agree that our current laissez-faire system isn't working, but what we need is moderate federal restructuring of the system, not full re-regulation.
Remember that now most countries have followed our lead and deregulated their aviation industries. It's tough to compete as the regulated one in a de-regulated market - look at the situation Alitalia is currently in...
The pendulum has swung far to one side, but it's starting to look as if gravity will pull it back. What we really need are updates to all of the industries antiquities: rest, NAS, training requirements, and government handling of BK's. Regulation (in the sense that a federal agency would decide which airlines fly which routes and for what price) won't be a viable solution.
If we could convince congress and the FAA to invest in new aviation technologies, provide greater oversight to the financial conditions of the airlines, and closer examine training from the 141 Wonder Pilot schools to the airlines, then we could really make a difference.
Right Seat, I agree with you that greater government intervention is necessary. However, it has to be done in a well conceived and efficient way to be effective. As we examine and brainstorm and write letters to our officials, we need to take a strongly critical look at the history and decisions that led us to this point in time. Both the innovator and the historian have equal parts to play.