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Non-refundable advance purchasse fares - gone! They will simply look at the cost of operating a particular flight, add on the profit they are allowed to make, then divide by the number of seats on that plane. Then on the day of departure if there are no-shows the arline will collect additonal fare based on the number of empty seats. That sounds like a great system, doesn't it? Or perhaps one's fare should be based on the combined weight of one's person and baggage. Then that would make it really fair since it costs more to transport a heavy person with lots of bags than a 98 pound granny with a purse! Better yet, do what TWA and Pan AM did back in the early days of aviation. Base a round-trip tran-continental fare on one month's wages of the average person. The average wage index for the year 2007 was $ 40,405.48 so a round-trip ticket from Los Angeles to New York would be about $ 3,367. I'll bet lots of people would fly at those prices!
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You hit the nail on the head when it comes to regulation. When regulation was in place, the government set the price for the fares. ALL airlines flying within a particular market, charged the same fare, and it was much more expensive, than even today. If you think airfare is high now, let re-regulation occur. On top of that, you wouldn't be able to go to a website like Expedia, or Travelocity, for a cheaper fare, on another airline. I have current co-workers who worked for the airlines, when they were regulated. ALL fares, within a given market, were the same, no matter what the airline. Airlines couldn't undercut each other, by charging a cheaper fare. Regulation has some good points, but I guarantee a re-regulating of the airline industry will return it back to the days when only the wealthy could fly, which would mean your average Joe would be stuck taking the bus, or train, or having to drive, because they will no longer be able to fly. This means that many people wouldn't be able to take advantage of the new, and improved customer service, to begin with.
As per the airlines charging for a "package", which includes security, and the airport, etc. The airlines, again, do not have anything to do with security. They do not have anything to do, with the airport. The TSA (Department of Homeland Security - OUR federal government) heads security, and makes the policies and security procedures you must follow, NOT the airlines. The airlines are mandated to charge the "9/11 security fee", and that money goes to the federal government, not the airlines. The airlines are also mandated to charge the airport/passenger facility charges, and airport taxes. That money goes to the airport, not the airline. The airlines do not own, and operate the airports. They rent gate, and ticket counter space, and have to pay landing fees, to even land at the airports. The airports are run by the city in which they reside, and contracts are worked out with the airlines, for them to fly in. The airlines are a source of revenue for the airport, hence the facilities charges.
I guess what we should have happen, is this. The airlines should be re-regulated, so service gets better. Keep in mind that re-regulating the industry will not stop the delays due to ATC, weather, etc., nor will it stop cancellations due to things, as well. It will just mean better service at the counter. It will mean greatly increased fares, however, as the cost for that service. The airlines should also stop charging the "9/11 security fee", and instead have you stand in a long line, to meet with a TSA cashier, who will collect that fee, before then directing you to the other long line, where you will then go through the security screening process. Once through security, you will then go through another long line, in which an airport cashier will then collect your airport facility charges, taxes, etc. This will certainly make for a very convenient process, but it will mean the airlines no longer are to blame for selling it as a "package", which will make people, apparently happier.
But, as is typical in this country, and with most people, they want something, and then when they get it, it isn't good enough, and/or not what they thought, and they want it changed again. You often don't realize how good things are, until they are changed. So, lets re-regulate the airline industry. You'll spend $1,000+ for your flight, instead of $150, but you'll get treated better at the counter, and by the airline, but still be stuck in coach, unless you want to pay the $5,000+ for the first class ticket. Then, instead of making it a little convenient, which is what the government, and the airport had in mind, by having the airlines collect the fees, those will all be collected seperately, as you go through security, etc. So you'll now have to show up to the airport five hours before your $1,000 flight, just to go through all of the process to get to the gate.
I would suggest that people go the a major book store (Barnes and Nobles, Book A Million, etc), and pick up a book called the "FAR/AIM". It is a book full of the federal air regulations that the airlines, and pilots, as a whole, must follow. Look at how thick that book is. People do not understand that there are rules to the sky, just like there are rules to the roads. You can't just go start up an airliner, and go fly. ALL airports, and runways have certain weather minimums, or airplanes cannot land, or takeoff. These minimums are set by the FAA, and they are different for each runway, and each airport. At the airport I work at, and the particular runway the airlines use, the clouds (ceiling) has to be at least 500 feet, or the planes cannot land. However, an airport just a few miles away, may have different minimums, of 1,000 feet. That is why planes can sometimes land and take off from one airport, but not another, etc. People are quick to blame the airlines for lying, etc., but the fact is, air travel, and flying airplanes is much more complicated than that. It isn't like getting in your car, and driving. Most passengers are ignorant to this, and chose to assume, because that assumptions is more "convenient" to them. The weather doesn't have to be storming, to cause a delay, or a cancellation, and that only scratches the surface. The airlines are not obligated to give refunds, or amenites, of any kind, when delays occur due to forces outside of their control (Weather, ATC, etc).