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Let foreign airlines fly US domestic routes article

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BRA

Rollins Rules!
Joined
Jun 11, 2002
Posts
904
The board is too quiet this morning??.


http://www.usatoday.com/story/travel/fli....routes/4329825/

Try not to laugh too loudly the next time a flight attendant makes one of those pre-flight announcements to thank you for your business and say, "We know you have a choice in airlines."

Now that the USA is down to just three major legacy carriers, thanks to the misguided merger between American Airlines and US Airways, it doesn't take a card-carrying frequent flier to know your options are awful.

But they don't have to be. Imagine if foreign airlines were allowed to offer flights in the United States, competing head-to-head with our new winged monopolies.

"If I could fly Japan Airlines or Cathay Pacific on U.S. domestic routes, at prices comparable to American airlines, I would buy those tickets in a New York minute," says John Strohm, a software engineer from Huntsville, Ala.

He's not alone. Once other air travelers have experienced the impressive service some foreign airlines offer, they often wonder: Why can't they do business in the USA?

International airlines do operate in this country, of course, but they're forbidden from flying point-to-point destinations domestically. These laws, which are meant to protect American consumers and jobs, are having the exact opposite effect. Eliminating ? or at least partially lifting ? outdated restrictions could significantly increase competition and improve customer service.

RELATED: The Arabs are coming (and their airlines are great)

Banning foreign carriers from offering domestic flights might have made sense a generation ago, when the American airline industry was tightly regulated by the federal government, say industry watchers. But today, with only a few megacarriers remaining and the security concerns of the Cold War a distant memory, it's harder to justify the laws.

"Foreign airline competition and capital investment in U.S. airlines could quickly improve passenger service, lower fares, result in new start-up airlines, and relieve overcrowding," says Paul Hudson, president of FlyersRights.org.

That may be easier said than done, says Steven Truxal, a professor of aviation law at City University London. He explains that even if we wanted to allow British Airways or Lufthansa to offer flights from New York to Chicago, we'd insist that the EU allow us to do the same, and that would require a treaty renegotiation. "Not an easy task," he says.

Other hurdles stand in the way, including opposition from unions, which claim relaxing these laws would endanger American jobs, and domestic airlines, which don't want the competition. Both would also correctly point out that some international carriers receive subsidies from their governments or face lighter tax and regulatory burdens, which would appear to put U.S. carriers at a disadvantage.

But the barriers aren't insurmountable. Albert Cardenas, an English teacher who lives in Bogot?, Colombia, has had a front-row seat to this kind of liberalization. "For example, Avianca, the supposedly Colombian airline owned by a Brazilian, offers flights between different cities in Spain; and LAN, the Chilean airline, connects several cities in Colombia," he says. The result: more choices and better service.

"This is a normal practice in a globalized world," he says. "But it seems like the United States doesn't want to join this kind of world."

Ah, but Americans do.

"Considering the domestic airline mergers, I think foreign airlines should be allowed to operate domestic flights," says Harry Kopy, a stagehand in Sayreville, N.J. "It might create more competition, perhaps lowering the cost of an airline ticket, or even help getting rid of some junk fees. Wouldn't that be nice?"

In numerous interviews I conducted with ordinary air travelers, a clear consensus emerges: The benefits of opening up the domestic market to foreign competition far outweigh any drawbacks.

Being able to buy a transcontinental ticket on Cathay Pacific or Qatar Airways would force U.S. airlines to offer lower prices and upgrade their service, ending a shameful race to the bottom that's defined domestic air travel in the last decade. U.S. airlines would no longer take us for granted.

"The government regulations are in place to help inefficient corporations at the expense of consumers and more efficient businesses," says Mike Zoril, a financial analyst from Beloit, Wis., who, like many others, dreams of a day when the rules are changed to favor consumers.

We're getting closer. The EU has been pushing to open America's skies to competition, most recently in negotiations for its Transatlantic Trade and Investment Partnership treaty. Until the shackles come off, you can do the next best thing: Buy a ticket on Virgin America, which embraces the service culture of its European namesake, Virgin Atlantic.

Picture what air travel would be like if Virgin became the standard. Wouldn't that be a reason to love flying again?
 
This will happen in our lifetime. However, it won't lower prices or improve service. The USA and Europe are the most competitive air travel markets in the world. Emirates or Cathay's standards would necessarily decline in order to compete in these markets. Sorry, no first class showers from JFK to LAX anytime soon.
 
That idiot interviewed thinks that the U.S. price will give him Asian service? F*ing dumb-bass. If he wants better service, he has to pay up. That's called the first-class section. As long as our spoiled and soft American public continues to be cheap, the airlines will in turn act cheap.
 
Never gonna happen. As stated in article, Not only will the other countries (except the UAE where nobody needs to fly more than one flight per day to that heat wasteland) not allow foreign airlines to fly WITHIN their countries, but also training records would be hard to come by and hard to verify. Those airlines would have to comply with US labor laws, and that means discrimination laws too. Also, gate space and slots are limited at the busiest US airports. Sooooooo, nahhhhh.


Bye Bye---General Lee
 
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This will happen in our lifetime. However, it won't lower prices or improve service. The USA and Europe are the most competitive air travel markets in the world. Emirates or Cathay's standards would necessarily decline in order to compete in these markets. Sorry, no first class showers from JFK to LAX anytime soon.

I disagree. Foreign purchasing rights are still limited, so rich Gulf carriers can't come in and buy a majority. Thanks to consolidation and new fees, the big 3 US carriers should remain profitable and stronger.

Even though the US carriers will be expecting huge retirements and maybe employee shortages, so will the rest of the World. Getting pilot licenses are expensive everywhere.


Bye Bye---General Lee
 
Middle East airlines are subsidized by their governments (read: they spend oil money for prestige) and our very own Ex-Im Bank so they'll buy Boeings. Not to mention sweetheart deals like the US Customs station they're building in Dubai, which is not served by US carriers. Couple that with the fact that US airlines are taxed higher and more regulated than just about any other industry, and this guy wonders why we have a hard time competing. I wonder if he presented any of these facts to his highly knowledgeable pool of "ordinary air travelers".
 
That idiot interviewed thinks that the U.S. price will give him Asian service? F*ing dumb-bass. If he wants better service, he has to pay up. That's called the first-class section. As long as our spoiled and soft American public continues to be cheap, the airlines will in turn act cheap.

American carrier "first class" can't compete with European/ME coach class. "That idiot" has it right. Now that I'm out of the industry and a consumer, cabotage can't come fast enough.
 
American carrier "first class" can't compete with European/ME coach class. "That idiot" has it right. Now that I'm out of the industry and a consumer, cabotage can't come fast enough.

Time for you to move to Dubai also. But, don't openly kiss anyone on the beach, you may get arrested. Have fun and bring sun screen!


Bye Bye---General Lee
 
The thing missed by this article is even if we let foreign airlines fly domestic routes, prices may go down on select routes, but overall they would most likely go up. JAL and Emirates will only pick up the choice US domestic routes like NYC-LAX, or BOS-SFO, etc.

They are not going to fly from ATL-OKC, or DTW-MSN, etc. the only way the domestic carriers would be able to make a profit would be to increase fares on cities the foreign airlines don't operate.

Given an even playing field the US airlines can compete with anyone. But we are a long way from fair competition and the sad thing is we have our own government to blame.
 

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