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Originally Posted by PHXFlyer
Exactly what rules would you impose?
The problem is, as you mentioned, fares are likely to increase as a result. In this fragile economy I'm not so sure this is a good idea. Airlines are already hurting and if they raise fares to a point where the bargain hunters will no longer buy it will just create lower passenger loads leading to more schedule reductions and furloughed employees. It's a vicious cycle indeed.
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I don't see anything wrong with a smaller, more profitable U.S. airline industry. In my view, the only reason why airlines have been so resistant to any form or fashion of regulation is pure greed: anything that decreases the size of the pie is bad, even if it means more margin versus cost and greater stability for the airlines.
As far as specifics, allow me to quote from my previous posts:
Since the days of de-regulation, commercial air travel in the United States has become much more affordable when adjusted for inflation. It has also become safer and far more plentiful. As the economic model for the industry has matured, however, service levels have continued to adjust to consumer elasticity of price. The result is that human beings are being treated as something less than human in too many instances.
Regulation comes in many forms that can be instituted on varying levels with a wide degree of economic impact upon the airline industry and its consumers. Setting arbitrary minimum fares is a bad idea, as are bailouts, government ownership, and federal loan guarantees to airlines. However, the legislation of a comprehensive and balanced "passenger bill of rights" is a form of regulation that just makes sense.
In my view, this should include:
- compensating passengers for delays that are within the control of the airline on a sliding scale basis over prescribed lengths thereof;
- creating transparency of price, such as establishing ONE price of fare inclusive of all taxes, “fuel surcharges,” etc.;
- limiting the scope and nature of fee-based services airlines can implement;
- setting phased-in, minimum requirements for seating space and pitch, and of course;
- prohibiting long on-board delays wherein passengers are denied food, water, and access to sanitary, functioning toilets.
These are matters of basic human decency and fairness that would not contravene free market principles to any level of great disproportion. There are any number of other factors that could be included as well, such as allowing foreign-owned airlines to compete within the U.S. under the same rules.
Paradoxically, at the same time that we need to institute common-sense regulation in favor of CONSUMERS, we need to mitigate the overly powerful unions that protect airline EMPLOYEES who routinely abuse their passengers. It makes sense to do both.