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Angry lawmakers say it's an 'absolute joke' there's competition in the airline industry: FlightAware

Discussion in 'Airline Fares, News & Discussion' started by Lord Leighton, May 12, 2017.

  1. Lord Leighton

    Lord Leighton Hangar Gold Member I

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  2. Richard Wyeroski

    Richard Wyeroski Hangar Gold Member I

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    ..........maybe they should look at the deregulation act of 1978!

    It allowed anyone with money to get into the aviation business FAR 121!!!
     
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  3. Rotorruss

    Rotorruss Hangar Silver Member I

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    Isn't it ironic that 121 is a palindrome??? Too, bad the FAA isn't one, but then again, they continue to act like they are backwards. And not in a good way, either!! Of course it could stand for, Abling Another Fatality?!!
     
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  4. Lord Leighton

    Lord Leighton Hangar Gold Member I

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    Good thing it's not a 'Palindrone' or she might be able to see Russia clearer, the MSM would report.
     
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  5. Orca17

    Orca17 Hangar Bronze Member VI

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    Deregulation had unintended consequences - among them, with the lack of federal oversight of fares, it allowed for predatory competition. It works like this:

    Little Air starts flying from City A to City B.

    Big Air flies the same route.

    Little Air attracts customers by offering lower fares than Big Air.

    Big Air cuts their fare on that route to the point that it is unprofitable to fly it.

    Little Air has no choice but to fare match, or lose customers to Big Air.

    Big Air waits until it starves Little Air of cash, then resumes normal pricing on the route.

    Northwest was notorious for doing this. American did this to Reno Air until Reno finally sold out to them.
     
    Last edited: Jul 16, 2017
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  6. Rotorruss

    Rotorruss Hangar Silver Member I

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    ...not to mention essential air service. Lil Air often exists because of the taxpayers being fleeced to cover unprofitable airfares.
     
  7. Richard Wyeroski

    Richard Wyeroski Hangar Gold Member I

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    .....yeah the deregulation act of 1978 allowed anyone to get into the industry. Many tried with limited funding and did not make it. If anything it is a tough industry to make a profit. I believe the Feds should go back and subsidize the industry again so airlines do not have to choose doing maintenance over making a profit......it is the nature of the beast. If one thinks about the inferstructure that is need to operate a 139 airport and the cost involved for ground based services, like ATC,it would blow your mind. The land major airports occupy is worth Billions of dollars. Operating a terminal and gates has too be federally controlled. Unfortunately there is always someone trying to close airports for their own agenda.....
     
    Last edited: Jul 16, 2017
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  8. Rotorruss

    Rotorruss Hangar Silver Member I

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    ...funny, yet sad, that the top ten airlines are now the top four. How well did that "deregulation" work out for the country? Fuel prices are going down, yet airfares are going up. The irony of "deregulation". Drain the Swamp!!
     
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  9. Orca17

    Orca17 Hangar Bronze Member VI

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    There is some of that as well. Great Lakes Airlines provided the only commercial air service to the isolated city of Ely, NV. After the service was discontinued, it came out that the federal subsidy was up to $3,700 per passenger to maintain the service.

    Federal airline subsidy crucial for Ely

    The no-frills flight to and from Ely every afternoon saves more than 200 desolate miles and several hours of driving time for fliers on board. But American taxpayers have been footing most of the bill, up to $3,700 to subsidize each passenger who straps into a seat for the 75-minute trip.

    The flight was between Ely and Las Vegas.

    If you have to pay an airline almost $4K per passenger to make a flight, odds are that there isn't enough business in that location to sustain air service anyway.
     
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  10. Orca17

    Orca17 Hangar Bronze Member VI

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    I use airline deregulation as an example to those who believe that government getting out of business' way is always the best route. We have less competition in the airline industry now than at any time since the early days of air travel, and it is a direct result of the lack of government regulation.
     
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