Tag Archives for deregulation.
Spirit Airlines’ collapse has become a political Rorschach test: one side says blocked mergers killed it, another says deregulation and Wall Street did, and some are using it to argue for nationalizing the airlines entirely. They are all reaching too hard. Spirit’s failure says less about capitalism failing than about what happens when policy tries to over-engineer an industry.
While we can look longingly at the food offerings of yesteryear, those only existed because tickets were priced beyond affordability and competition with lower fares was against the law, at least where federal regulations applied
In fact it’s the end of the lavish meals for most airline passengers that has marked the progress of civilization.
I told you back in September that you’d start hearing a lot more about re-regulating the airlines in the months ahead. An advisor to Elizabeth Warren was coming out with a new book making that case. But the arguments are weak and maybe even disingenuous? Because Professor Sitaraman is a really smart guy and he’s studied his topic in depth so surely he has to know that the arguments he’s marshaling are superficial and wrong?
There’s a shot across the bow of aviation – an intellectual case is being made for airlines to revert to the status of public utilities. Sitaraman’s upcoming book can be seen as a starting gun for arguments over regulating the airline industry. The arguments for this used to be unserious, by folks like Robert Kuttner. That’s changing, and with a direct line to people in power.
People who care about not making air travel worse need to wake up to the threat, though there is also much we should be doing that would make air travel better.
Deregulation has meant more people have access to the skies thanks to lower prices (the government used to mandate high prices most people couldn’t afford). Flying has become more small-d democratic. Without government protection for airlines wages haven’t grown.
Working as a pilot was once glamorous, but the relative status of pilots has fared (somewhat) better than flight attendants. Some of the same effects have influenced the way we regard pilots today versus 40 years ago, although there are additional factors that have made serving as a flight attendant fall in status even more than flying up front.
Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel -- a topic he has covered since 2002.
Co-founder of frequent flyer community InsideFlyer.com, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »
