Competition drives down prices.. That is a fundamental principle of our economic system, and for decades monopolies have been regulated. The fortress hubs effectively carve up large markets and control them. It is not just the major hubs... Such as Dallas, but secondary markets, such as the hub in Charlotte, NC for example. The lack of aircraft is utterly bogus... The low costs have seen explosive growth in the last decade. Over the next decade Boeing and Airbus will be joined in the 120 to 150 seat Market, (the workhorses of the US domestic Market) by Embraer, China Industries and the Sukhoi. There is also a possibility Mitsubishi might launch a 130 seater also. Capacity to build will not be a barrier.
The advantage of allowing foreign carriers (and note, I only said on a reciprocal basis) is that the major markets would attract large, well financed carriers. BA for example would certainly be interested in a NY/LAX route... Lufthansa may hav an interest in challenging AA in Dallas and so on. Access to the US Market would require that US airlines had reciprocal access to the European Market.
The Market for air transport is clearly a global one and the need for a healthy competitive market domestically is urgent. Curiously, that will require a mix of de-regulation and regulation. De-regulate competitive restrictions, allowing foreign ownership and entry into the Market...whilst enforcing strict Market conditions, such as limiting takeoff and landing slots to 25% or limiting penetration of any airport or Market to 30%.
I see no reason why this will not work. Fast food sits comfortably alongside full service restaurants, and Spirit should be able to sit comfortably alongside Singapore Airlines. People will choose on price, quality and convenience for air travel just as they would for any other product.
The US airlines have fought every attempt at relaxing the rules on foreign ownership. What are they afraid of? Europe jphas offered the US. free access to the European Market, but the US airlines are opposed. They are protecting their monopoly.
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