Skip to comments.A free market in the sky
Posted on 11/21/2012 9:42:04 AM PST by FewsOrange
AS the holiday season approaches, the major airlines are signaling to some passengers to take a hike. At least thats what travelers might infer from the smaller number of flights being scheduled at many of the nations airports.
Between 2007 and 2012, airlines cut the number of domestic passenger flights by 14 percent, ... The reason is simple: airlines have decided that the best way to earn a healthy return on their investment is to maintain tight discipline on capacity. Thats a fancy way of saying they want their planes to fly as full as sardine cans. ... But this, of course, leaves Aunt Sally in Sarasota, Fla., with fewer options to visit family during the holidays;... Unfortunately for travelers, this situation is unlikely to change anytime soon. ...
That is, unless policy makers do what they should have done a long time ago and allow foreign airlines, including discount carriers like Ryanair and global players like Qantas and British Airways, to serve domestic routes in the United States. ...
As things stand now, the United States allows foreign airlines to serve its major cities as part of international agreements conventions that have been around for decades....
Competition from foreign airlines would put downward pressure on wages, something that union workers may object to. But by reducing fares and expanding service, it would also increase the demand for air travel and related services thus, presumably, creating additional jobs during a time of persistently high unemployment...
Airline travelers, in fact, have already benefited significantly from increased competition among international carriers. Beginning with a successful agreement with the Netherlands in 1992, the United States has pressed for liberal free-trade pacts, called open skies agreements, with several nations...
(Excerpt) Read more at nytimes.com ...
Let's get rid of the unions, let foreign airlines that allow free competition in their markets come in and compete on a level playing field. Aunt Sally is still going to stay home because no airline is going to make a living flying half empty planes.
I was flying a couple of weeks ago from Charlotte to Ft. Lauderdale via Atlanta on Air Tran. In Atlanta they announced they had overbooked and were offering people two round trip tickets anywhere they flew, hotel for the night and a meal voucher for those willing to give up their seats. Doesn’t sound very smart to me, but what do I know? Seems like that would cost more than just booking what the plane would hold.
This can all be chalked up to high fuel prices and maintenance costs thanks to largely Democrat policies.
Think about it.
What foreign airlines allow free competition in their markets?
Ryanair (mentioned in the article) is an Irish airline and yet it has hundreds of routes that neither start nor end in Ireland.
required under federal law, I think.
Are they required to over-book? That’s crazy.
the freebies for overbooked pax are mandated.
the booking algorithm the airlines use takes this into account when computing ticket revenue return.
cost of doing bidnez.
Southwest Airlines (including Airtran)
Sun Country Airlines
There is no evidence allowing foreign carriers to fly domestically in the U.S. (cabotage) will change the competitive dynamic. What would be more likely, is all carriers would reduce individual capacity until overall industry capacity reaches an equilibrium point to allow fares to match expenses.
I always learn something new on FR. Thanks.
Aunt Sally is staying home until the TSA is reined in or replaced with something more El-Al-like.
Yes. I wonder how much it would cost to hire them to come and do our security. I'm sure it would be cheaper then what we are paying now.
Aunt Sally is staying put. She’s pissed at her knucleheaded nices and nephews for voting for that dumb putz again.. Let
the little pr*cks eat coal for Christmas!
nices = nieces
Aunt Sally should also change her will, if anything was going to the young fools! :-)
They are not required to overbook, they choose to do so. On most flights a few people don’t turn up or cancel late so it isn’t an issue. The airlines reckon that the extra revenue from overbooking more than compensates for the few times that they have to compensate passengers that get bumped.
She should spend it now before the little commies or Obama takes it from her! :-)