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| 7/9 |
| 2005/4/16-19 [Transportation/Airplane] UID:37224 Activity:kinda low |
4/16 Quite decent article on why airline deregulation has blown major ass
http://www.salon.com/opinion/feature/2005/04/16/airline_woes/index.html
\_ How does making air travel more affordable "blow major ass"?
\_ Cacelling pension obligations to keep the mediocre middle
management of United in place is criminal for starters.
\_ Wow, you didn't read the article. What a surprise.
\- that article has been classified as: ass. as in the case
of ca energy mkt the airline industry isnt totally
deregulated [and i am not suggesting it should be], but
there are some pretty unambiguously crazy regulations on
the books. YMWTGF: "wright amendment". a lot of the
allegation/evidence in the article have the flavor of
"there is a huge range of prices on torillas in SF. in fact
"there is a huge range of prices on tortillas in SF. in fact
i can buy a DVD player for the same amount $ as 15 packs
of torillas. isnt that crazy? there is a SF tortilla
of tortillas. isnt that crazy? there is a SF tortilla
conspiracy!". note: i am not taking a position on
airline dereg, just feel it isnt a good article.
BTW, if the source of the problem is mkr power [due to
BTW, if the source of the problem is mkt power [due to
mergers and concentration], that is a differnt problem
than dereg of prices. if you are more seriously interested
in IO analysis of airlines, look at something like Rand
Journal Econ. i dunno if they have free articles via WEEB.
they may be in something like JSTOR. ok tnx.
\_ Here's a quarter, go buy yourself a copy of Strunk
and White. Learn how to write in complete coherent
sentences.
\_ (Restored) Here's a quarter, go buy yourself a copy of
Strunk and White. Learn how to post in coherent
sentences. And don't be a fucking ass and delete
my post or I'll nuke yours like I did last night,
nitwit.
<stop deleting my posts, jerkwad, and learn how to spell
tortilla>
\_ Why did you delete the post from the guy suggesting you
obtain an elementary English usage book? This post does
look like it was written by drunken English tourists (and
makes about as much sense.) -John
\_ Industry consolidation is a direct result of deregulation.
It was even one of deregulations goals.
\- As indicated above, I think it is productive to
distinguish between price-deg of previously regulated
fair on air routes and a general change in how much
vigorousness the DoC/FTC antitrust people persue
mkt concentration issues.
<and also learn how to spell "pursue">
\_ By the way, potential knee-jerkers should note that this
isn't a Republican/Democrat thing - airline deregulation
was a Carter initiative. |
| 7/9 |
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| www.salon.com/opinion/feature/2005/04/16/airline_woes/index.html -> www.salon.com/opinion/feature/2005/04/16/airline_woes/index_np.html Investor Relations Opinion Crash and burn Deregulation led airlines to shaft their customers -- and then go out of business! But the airlines that emerge from bankruptcy probably won't be any better. e-mail April 16, 2005 | The impending demise of nearly every major airline -- US Airways, Delta, United, Northwest and others are either in bankrupt cy or near to it -- should fill travelers with joy, given the way airlin es have treated us. Since deregulation unleashed the carriers' talons in the late 1970s, they have stuffed us into smaller seats and smaller pla nes, taken away perks ranging from meals to pillows, charged us capricio usly and exorbitantly, routed us through cities we never wanted to visit , and instituted ridiculous requirements like mandatory Saturday-night s tay-overs. Unfortunately, there's no guarantee that any new airlines that might emer ge from the financial wreckage of the current bunch will be any better. The industry has lost more than $30 billion since 2001, and high oil pri ces alone could lead to an additional loss of $5 billion this year. The nine largest US airlines are expected to report first-quarter losses t otaling at least $2 billion in the coming week. True, a few nimble airli nes like Southwest and Jet Blue are making a profit by offering flights at reasonable prices with few restrictions. But they are still a small p ercentage of the market and they may stay that way. Want to read the rest of this article and all of Salon for FREE?. Just watch a brief advertisement to get a FREE Site Pass for today. Or you can join Salon Premium today and rea d Salon without ads. |