Why Fares Remain Low...ABC News article

[chase]

PCL,

No slap taken at the "real" airline comment....just making fun of myself & SWA...

As for your comments...many of us, not just in the airline industry work under the assumption that what "is" today, will remain forever in place. That nothing new in the way of new technology, new methods or new business models (in the case of our discussion) will ever be invented again....we all suffer under the paradigm that what we see around us is what will be in the future & that nothing new will come about that will "do" what these things are currently doing....let me illusrate my point.

15 years ago who would think of a concept such as "google"...it was only a dream, rough concept....now an entire industry & industries are changed because of it.....the new "micro jets" are coming out...is that the answer? I don't know....new technology on engines that may one day exclude or reduce the amount of oil required to go into a propulsion "fuel" thereby negating the entire "oil" issue. Other new & imaginative solutions to problems that our industry & others are facing....I have great faith in the American (& coming to a third world near you also) initiatives & brain power to find new technologies/business models that work.

As for more regulation....sorry, can't disagree with you more strongly than on that point....regulation adds "friction" to the process....adding "barriers" to the free market system on the whole is a bad idea IMHO....it only promotes & allows inefficienies to be awarded & allow loop holes for less scrupulous folks to find holes in & take advantage for their own personal gain....when things are out in the open for all to see, bid on fairly & compete with, the consumer & the producer are better served. Just my my $.02 worth....thanks again for some interesting points but we appear to be coming to different conclusions...thanks for not getting frustrated with an old guy who has failed logic cheers

 

[FlyBoeingJets]

Remember the deregulation of telecom? Long distance rates are a fraction of what they used to be. Careers and Companies were destroyed. Americans, apparently, are o.k. with that. Same with steel and now the auto industry.

I think Americans are happy with airline deregulation and the low fares it has brought them. I think they are also happy the unions are getting put back in the box. The effect on the industry employees is "unfortunate" but may be a necessary evil for the goodness of cheaper travel. (That's me thinking like an airline traveler)

Don't get me wrong, I respect the passenger. They pay the bills. I even like to chit chat with them. But they are the master. In fact, their power and steadfast determination to obtain the lowest fare are frightening.


If you are going to write an article and sell it to the public you might as well say they "deserve" low fares. It would not do a writer any good to irritate the hand that feeds them.

 

[PCL_128]

As for more regulation....sorry, can't disagree with you more strongly than on that point....regulation adds "friction" to the process....adding "barriers" to the free market system on the whole is a bad idea IMHO....it only promotes & allows inefficienies to be awarded & allow loop holes for less scrupulous folks to find holes in & take advantage for their own personal gain....when things are out in the open for all to see, bid on fairly & compete with, the consumer & the producer are better served.

Normally, I would completely agree. I'm as conservative as they come on most things, and I love the free markets. There are a few things that I think need to be excluded from such market forces though, due to their importance in the nation's economy. Would you want to bid out a police force to the lowest bidder in a free market system? Firefighers maybe? I doubt it. I view the airlines as the same sort of thing. They provide a service that is absolutely essential to the American economy and way of life. The whole economic system is now built around the ability to freely "move about the country" (some props to SWA there ). I think this makes it important to remove the airlines from the normal market pressures, since they have proven themselves to be unable to cope with them.

thanks for not getting frustrated with an old guy who has failed logic cheers

Truly a pleasure, sir. I always like talking with the "old guys." If I was talking this over with a young guy like SWA/FO, this would have degenerated into a shouting match by now. Glad we could have a pleasant debate.:beer:

 

[mule]

I can't believe what I am seeing....

An intelligent discussion on flightinfo without all of the "mine is bigger than yours" personal attacks. I love it!

 

[IB6 UB9]

I can't believe what I am seeing....

An intelligent discussion on flightinfo without all of the "mine is bigger than yours" personal attacks. I love it!

...and even with a guy who PFT'd.

 

[FlyBoeingJets]

I'm as conservative as they come on most things, and I love the free markets. There are a few things that I think need to be excluded from such market forces though, due to their importance in the nation's economy. Would you want to bid out a police force to the lowest bidder in a free market system? Firefighers maybe? I doubt it. I view the airlines as the same sort of thing. They provide a service that is absolutely essential to the American economy and way of life.

Everybody thinks their career should be excluded from any free market forces as they take advantage of lower prices on consumer goods. Airline travel important? Yes. Exception to the rule of free market? Not a chance. Maybe the biz jets who carry the really important people are an exception.

We have VOLUNTEER firefighters in my neighborhood.

With all due respect, we have all been sold a bill of goods on the "American Way of Life" It is no accident that a majority of people consider themselves middle class and above average drivers. We have all bought the Marketing.

Welcome to the free market.

 

[SWA/FO]

They serve a few dozen cities, many of them smaller or secondary airports, and leave a large share of the country with no air service

If I was talking this over with a young guy like SWA/FO, this would have degenerated into a shouting match by now

Hey pal,

The SWA/FO has been here the whole time reading all of this. I disagree with your above statements. I don't think your belief/views make sense... But hey they are your own, I respect that. I'm probably not as nice as Chase, but I never yell...I might type fast but yell, no.

We serve more then 36 cities. The larger carriers that serve "smaller" markets do so with higher fares and some cities actually pay a carrier to operate out of their city. They price gouge the smaller cities because they can.

 

[SWA/FO]

and even with a guy who PFT'd.

And has one of the best jobs in aviation.

 

[canyonblue]

Everybody thinks their career should be excluded from any free market forces as they take advantage of lower prices on consumer goods.

I agree, ask any Bank Teller what they think of ATM machines. When was the last time anyone went into a bank to withdraw money. I also remember the days before Self Serve gas stations. The American people want it that way and the airline industry will have to adapt, even though most Gate Agents hate the Kiosks, and internet boarding passes.

 

[canyonblue]

I'm probably not as nice as Chase

Having met both of you I would say you two are more alike than you think.