Airlines and the Deregulation Mess
The Airlines and the Deregulation Mess
[As you might guess, the following was written while waiting between flights on an airplane trip that was the most miserable of my life. Please understand that parts of this may be incomprehensible due to discomfort, disorientation, fatigue, and missed meals.
This is written as a speech that could be given by a Presidential candidate.]
How many of you have recently enjoyed the ‘joy’ of air travel? No matter what airline you traveled on, or what airline you went on – unless you paid First Class, there was no joy in your travel. I doubt if one in 10 could say they enjoyed the trip, especially in light of how much you had to pay for the privilege of traveling by air.
The biggest problem is the original push for deregulation. Just as in cable and broadcast TV, the utilities, and , the airline industry has given us nowhere near the service we were led to expect from deregulation. In fact, we have been regressing. Services are more expensive and less dependable.
There is an underlying myth of deregulation. Everyone claims that competition will create a higher level of service and production. There is no myth in this – it is the truth. The underlying myth is that deregulation will lead to greater competition.
Think of where you had the largest amount of regulation in the past. It was in those areas where you needed or simply had a franchise – a single entrepreneurial body. When you allowed a utility to provide its service in your area, they did so with the guarantee of having the local or State government helping them obtain rights-of-way and permits. They didn’t have to worry about cutting corners in order to beat the competition. They could plan and build for the long run, not the short run.
In turn, local and State authorities were supposed to establish clear guidelines and procedures. They even set rates. Though there was often unhappiness and grumbling, in general this system worked.
The airlines have been deregulated. They went to the ‘hub-and-spoke- system of coordinating flights, a system based on idea that there will never be a problem in flight scheduling.
Guess what – there are problems in flight scheduling.
There are other issues – the number of airline docks, the changes in rates, the rules and fees that are added on and administered willy-nilly.
The less the competition, the less the service. In fact, smaller cities with smaller airports often have lost their scheduled airlines altogether.
We need to go back to the old system that provided service to everyone in the country, at an affordable price, at reasonable time with scheduling stability, with reasonable comfort – this last is something all of you will appreciate.
Presidential candidates have special privileges when it comes to travel. We get special air travel for security reasons. This removes us from knowing about the pain the rest of you feel.
But my staff, my supporters, my constituents – have been letting me know what you are going through. And through them I am feeling your pain.
[Postscript: The staff I have encountered have been as helpful as they can be under the circumstances. They are swimming upstream against poor management decision making.
Overseas outsourcing has its limitations and actually is a cost/benefit negative in the long run. Airline management ought to be forced to fly coach class at least once a month. JC]
[As you might guess, the following was written while waiting between flights on an airplane trip that was the most miserable of my life. Please understand that parts of this may be incomprehensible due to discomfort, disorientation, fatigue, and missed meals.
This is written as a speech that could be given by a Presidential candidate.]
How many of you have recently enjoyed the ‘joy’ of air travel? No matter what airline you traveled on, or what airline you went on – unless you paid First Class, there was no joy in your travel. I doubt if one in 10 could say they enjoyed the trip, especially in light of how much you had to pay for the privilege of traveling by air.
The biggest problem is the original push for deregulation. Just as in cable and broadcast TV, the utilities, and , the airline industry has given us nowhere near the service we were led to expect from deregulation. In fact, we have been regressing. Services are more expensive and less dependable.
There is an underlying myth of deregulation. Everyone claims that competition will create a higher level of service and production. There is no myth in this – it is the truth. The underlying myth is that deregulation will lead to greater competition.
Think of where you had the largest amount of regulation in the past. It was in those areas where you needed or simply had a franchise – a single entrepreneurial body. When you allowed a utility to provide its service in your area, they did so with the guarantee of having the local or State government helping them obtain rights-of-way and permits. They didn’t have to worry about cutting corners in order to beat the competition. They could plan and build for the long run, not the short run.
In turn, local and State authorities were supposed to establish clear guidelines and procedures. They even set rates. Though there was often unhappiness and grumbling, in general this system worked.
The airlines have been deregulated. They went to the ‘hub-and-spoke- system of coordinating flights, a system based on idea that there will never be a problem in flight scheduling.
Guess what – there are problems in flight scheduling.
There are other issues – the number of airline docks, the changes in rates, the rules and fees that are added on and administered willy-nilly.
The less the competition, the less the service. In fact, smaller cities with smaller airports often have lost their scheduled airlines altogether.
We need to go back to the old system that provided service to everyone in the country, at an affordable price, at reasonable time with scheduling stability, with reasonable comfort – this last is something all of you will appreciate.
Presidential candidates have special privileges when it comes to travel. We get special air travel for security reasons. This removes us from knowing about the pain the rest of you feel.
But my staff, my supporters, my constituents – have been letting me know what you are going through. And through them I am feeling your pain.
[Postscript: The staff I have encountered have been as helpful as they can be under the circumstances. They are swimming upstream against poor management decision making.
Overseas outsourcing has its limitations and actually is a cost/benefit negative in the long run. Airline management ought to be forced to fly coach class at least once a month. JC]
posted by Jack Cormode at 5:05 PM
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