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Re-Regulating the US Airline Industry

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BeeVee

Well-known member
Joined
Nov 27, 2001
Posts
62
OK - the US Government has now stepped in and bailed out Fannie Mae, AIG, and others.

Does anyone think it may be possible to reverse the De-Regulation Act of the late 1970's and subsidize the airline industry?

I'm fairly certain that British Air, Lufthansa, and Air France are all subsidized by their respective governments.

Doing so would be rough on consumers...airfares would rise significantly and choices would decrease -- but for us IN the industry, it might return this profession to the glory days....thoughts??
 
I'm sorry for being so blunt dude, but you need to go educate yourself on the history of the airline industry, and get your facts straight about European airline subsidies and the foolish idea that the government's re-regulation of the airline industry will make our profession better.
 
Daedalus said it right. I don't think many of us understand what reregulating the airlines pricing and route structure would do to the airline industry. It's very possible it would furlough more pilots. European, Asian, and South American airlines aren't subsidized any more than US airlines are. If you really want to protect airline pilots jobs, then get them to repeal Open Skies, and stop Air India from operating the shuttle from DCA to LGA, because there isn't anything stopping them.

Being competitive is the only real job security anyone can hope for their company. A company/organization's ability to adapt and react to the market, technology, economy, etc, etc will do more to ensure its survival than any piece of legistlation.
 
If you really want to protect airline pilots jobs, then get them to repeal Open Skies, and stop Air India from operating the shuttle from DCA to LGA, because there isn't anything stopping them.

And stop all those US pilots flying in India, China, Emirates, etc. at the same time. Far more US pilots have benefited from the liberalization of routes then have lost.
 
If you really want to protect airline pilots jobs, then get them to repeal Open Skies, and stop Air India from operating the shuttle from DCA to LGA, because there isn't anything stopping them.

Capt,


Isn’t what you’re truly advocating a form of re-regulation?? Stopping or impeding international carriers from competing here in the US is not true capitalism. It’s called protectionism which is basically the same thing.


I thought the industry could have been on a course for re-regulation with gas at $135/barrel but with lower oil now and with the US Government up to its eyeballs in trouble with bailing out Wall Street, I don’t see the push for it.

If oil spikes again and the entire industry sliding into bankruptcy, the government will have no choice. Pretty much the same deal that is going on with Fanny, Freddy, and AIG.

AA767AV8TOR
 
WHY WOULD THE GOV'T BAIL OUT AIRLINES WHEN WE DO IT FOR THEM?

the problem is in how we have set up our career- there are plenty of professions that have not seen the wage losses that we have - b/c they have leverage. Our system was designed to have leverage in a gov't protected system where we could expect our company to last our entire career.
Our seniority system hampers the free hand of competition b/c none of us can say- "FedEx is offering $XXX<XXX- what can you offer me?" We are all married to our companies and have no system to allow the airlines to fail.
We must either employ a national seniority list of some kind- and/or flatten out payrates industry wide so that it won't destroy our lives if our company fails. If we were confident that the next job paid a livable wage- maybe we'd be stronger.

btw- Herb and I are democrats that argue against the current level of regulation. To say this industry needs more regulation is laughable- you apparently haven't noticed how ineffective/unfair the current regulation and tax situation is.
The appropriate role of gov't is oversight to avoid fraud and ensure safety. (something it has failed at repeatedly under republican rule)(Guess what? when CEO's know the gov't will let them get away w/ whatever- they proceed and line their pockets.)

You want better job security and a fairer distribution of revenues-(ie more money for pilots) VOTE DEMOCRATIC- Don't wish for gov't to bail you out- just make sure they do their job and stop the corruption.
 
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Capt,


Isn’t what you’re truly advocating a form of re-regulation?? Stopping or impeding international carriers from competing here in the US is not true capitalism. It’s called protectionism which is basically the same thing.AA767AV8TOR

Actually, capitalism is a social experiment currently being conducted to some degree in many countries throughout the world, much like socialism, communism, marxism, etc. What YOU are talking about is Globalism.


If oil spikes again and the entire industry sliding into bankruptcy, the government will have no choice. Pretty much the same deal that is going on with Fanny, Freddy, and AIG.

AA767AV8TOR

No choice? Can you tell me how the financial industry is the same as the airline industry, specifically in relation to the crisis that the financial market is in and how our industry problems are similiar. I don't see it, but I could always be wrong.
 
Life was good for a few pilots under regulation. There are probably 4-5 times as many pilot’s jobs now as there was in 1977. Back in reg time it was about 90% military that went to the majors. Dereg opened up a lot of airline job to non-military pilots. To return to regulation would raise ticket prices, reduce the number of passengers, and there reduce the number of pilots needed. BTW SWA the low cost provider has near the top wages, this was done under de-reg.
 
Pilot wages have dropped because the conditions that brought them about in the first place (industry expansion and the race for market share, the lack of pilots with the skill sets necessary to transition from props to jets) have changed and permanently. Qualifying for a position on the flight deck of a jet can be done in 6 months from zero hours. How much is someone like that worth?

Sorry, but Obama isn't your Hope here.
 
Yes, there is a case for re=regulation being made. The former head of AMR is requesting a look at it along with others. The expansion of the airline industry was coming with or without de-regulation and many of the majors were heavily ex-militry because that's where the preponderance of the pilots were then. With de-regulation the most potent weapon of labor, the strike, is dead and if US airlines are not subsidized, explain United, Us Air, America West etc.
 

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