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Originally Posted by bbtp
thanks, but you're not going to get me to agree w/ re-regulation for the following reasons:
Hi there! Well, we can't always agree on everything!
Here is my take on those points.. but gentleman will disagree.
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1. it's not right (morally, in a free country)
Totally disagree, free doesn't meat free for all.. freedom without restraint is tyranny. I for one subscribe to a more Roman Catholic view of freedom than the protestant view.. which is to say, morally I take the view that the free market, untempered by government oversight is as evil as the centrally controlled Godless communist system of the Soviet bloc.
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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.
The reason it's so safe today is the advancement in technology both in the air and on the ground, and has absolutely nothing to do with the business environment. I would argue that it would be yet even safer with stricter government oversight. The 11M fine WN is about to pay is a classic example of what used to never happen pre-1978.
The FAA is far too cosy with airline executives and the ATA. Pilot duty work rules are a prime example of this.
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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.
Lean and mean isn't what I admired about the airlines when I wanted to work for them. Great service, great product and happy employees that smiled at me is what attracted me.
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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:
In a totally regulated system, I would agree.. but I'm not talking about that. I'm talking about protection of pricing, not routes.. Startups more than anyone else have the hardest time with pricing, as we are. This makes the airline have to run a smarter operation internally and makes it so we're not stuck unable to increase prices to cover the added cost of oil as is the case now, especially at the start ups like Skybus.
Tax payer support of pricing is not a problem since travel and infrastructure is critical to our national economy and security. This is after all what the roads and bridges are. Would you have us pay a fee to use them?
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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).
Sad to say, but that might need to happen.. There are too many mediocre ones out there anyway!
bbtb... nice to see you on here btw. How is the new job?