Further Deregulation Could Vastly Improve US Air Travel

Discussion in 'General Discussion | Travel' started by sobore, Nov 27, 2012.  |  Print Topic

  1. sobore
    Original Member

    sobore Gold Member

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    THE deregulation of American air travelwas a near-unqualified success for cost-conscious travellers, who can now fly across the country far more cheaply than in the era of heavy regulation. There are more flights and they cost less. But deregulation was never completed.
    Even today, foreign carriers are forbidden from competing with American airlines in the domestic market.
    Clifford Winston, a scholar at the centrist Brookings Institution in Washington, took on this subject in a recent New York Times op-ed. American airlines are taking advantage of reduced competition to cut capacity and raise prices, Mr Winston argues:
    Unfortunately for travellers, this situation is unlikely to change anytime soon. With five airlines now serving 85% of the domestic market—four, if American Airlines and US Airways merge, as industry analysts expect—the major carriers are worrying less about the one factor that could disrupt their cosy, cram-’em-in strategy: competition.

    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. Why, after all, should an industry that has ingeniously used free-market principles to squeeze the most revenue out of each middle seat be protected from competing in a real free market?

    uggboy likes this.
  2. PhotoJim

    PhotoJim Silver Member

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    It would certainly make my life easier, as a Canadian who travels frequently inside the US (I'd love to see Air Canada and WestJet fly some of the major US routes to make connections in the US more convenient). Tit for tat though - American airlines should be allowed to service Canada. (United stops at YQR and continues to YXE to drop off the rest of its passengers ex-ORD: why can't they sell seats on that flight?)
  3. Wandering Aramean
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    Wandering Aramean Gold Member

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    The guy is a delusional whack job who has no concept of how the aviation industry works or what would actually happen if foreign carriers showed up in the US market. There is no way that random foreign carriers are going to fly their wide-body aircraft as feeder hops except for the absolute biggest routes out there, namely the ones which already have lots of service.

    Just because SQ could be allowed to fly between SRQ and CVG (the example he gives in the OpEd) doesn't mean they will.

    Also, it was originally published in the NY Times: http://www.nytimes.com/2012/11/21/o...l=1&adxnnlx=1353513688-B5RDgmH79qOY3RHl2ge5sg.
    LETTERBOY likes this.

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