Tag Archives for re-regulation.
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.
The New York Times ran an op-ed on Friday by William J. McGee full of bizarre nonsense, arguing that it’s time to re-regulate the airlines, because Southwest Airlines melted down over the holidays and the FAA (government regulator!)’s antiquated NOTAM system failed for several hours this past week.
The author makes the case for the Civil Aeronautics Board – abolished by deregulation – because it limited competition and ensured airline profitability. That’s obviously bad for consumers.
Bernie Sanders, like all of us, has some valid gripes about air travel today. He’s come out with a set of solutions he’d like the Department of Transportation to impose through new regulation. This includes forcing airlines to skip crucial maintenance, and requiring flight attendants to work when they’re sick with Covid-19.
We need more competition and we need more capacity, at airlines and in airspace. Hand waving that ‘the government should do something’ isn’t enough without specifying what the government should do. But, as Erin Andrews demonstrates, there’s a felt need out there for ‘something’ to be done.
The single nuttiest idea in aviation history was published in the Dallas Morning News, an argument by Matt Andersson, the founder of an airline startup (Indigo Airlines), to merge the nation’s airlines into one and have the government run it. Oh he wants to eliminate frequent flyer points, too.
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 »
