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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 Bronze Member V

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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 at 1:37 AM
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  6. Rotorruss

    Rotorruss Hangar Bronze Member V

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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 at 9:00 AM
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  8. Rotorruss

    Rotorruss Hangar Bronze Member V

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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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