It’s Time for Airline Re-Regulation!

It is safe to say that every time an industry is deregulated it ends up bad, costing the
American taxpayer an arm and a leg. The energy and telephone crisis are both prime
examples of how the governments’ release of control can cause problems. When they
deregulated the electric industry it resulted in a complete industry restructuring, an
increase in costs, and a decline in reliability. We now experience major declines in
reliability and an increase in frequency of blackouts. Why is it that we pay more money
for less service? Well, I will tell you why, it’s because doing away with regulation all
together was not the answer. Prior procedures had problems to say the least, but they
were caused by poor regulatory actions, not because regulation as a whole was a bad
idea. If a car has a problem with the tires you don’t replace the engine, or even the entire
car itself, you simply go down to the tire shop and get the problem fixed. Before the
Airline Deregulation Act of 1978, the Civil Aeronautics Board regulated every detail of
the airline industry. CAB determined what routes each airline could fly and what air
fares each could charge. It also regulated levels of service, employment policies,
finances, cargo, and the business structure of the Airlines. Even went as far as to
determine whether or not a new airline could enter the industry. Now it is time for the
government to step in and fix the problems with the airline industry. In my opinion the
regulation of the past was way too demanding on the industry. A new, more lenient form
of regulation would now be very beneficial.

The airline industry spent millions convincing Congress for deregulation. Senator
Howard Cannon of Nevada introduced the idea of deregulation back in 1978, and on the
28th of October the idea became the law. Ever since that day we have all felt the effects
of deregulation: passengers, shareholders, employees, and future and former employees.
I could list all the airlines that were affected, but there are so many that are now only
memories to what used to be a fair, competitive market. Pan Am, TWA, Eastern, Braniff,
National, Western, Piedmont, and PSA are a few that have gone down the tube since
deregulation. When regulation was still in effect every effort possible was made to
ensure that airline’s would never go out of business. Over one hundred small companies
have disappeared from our airline industry. We have seen them claim bankruptcy, or
become liquidated over night, and investors and lenders have had to write off their losses.
When congress gets involved they usually have mass taxpayer bailouts. With regulation
these airlines would have had a fair chance.

One of the biggest reasons we, the consumers of America, need to see re-regulation is
customer service. The service we now receive from the unfriendly airlines of modern day
deregulation is less than perfect. Complaints have increased every year and “customer
service” seems to be turning into a foreign language that we don’t understand. The un-
common term of customer satisfaction is only up-held recently through a handful of
companies: Southwest, Singapore, Cathy Pacific, Virgin Atlantic and Jet Blue. Under
regulation, legislation could require airlines to meet a basic level of customer service in
order to get subsidies and approval for changes in routes, prices and airport gates.
Another reason that re-regulation of the industry would be beneficial is the dependability
of airline services. Residents in smaller markets would receive dependable service,
Business flyers, which bring more revenue than any other, would no longer support the
deeply discounted fares of once a year flyers. Airlines would then be required to redeem
the customer earned miles and points for promised free tickets. Most people can’t even
remember the last time they sat down at a computer or walked up to an airline employee
and actually got the exact ticket they wanted. Customers would have a more comfortable
flying experience and more choices. They would be able to fly on point-to-point flights.
Layovers will become virtually non-existent. The airlines that do not already have larger,
more comfortable jets will have to purchase them. The use of 50 passenger puddle
jumpers will be a thing of the past. Friendlier flight attendants might even serve snacks
and drinks on all flights. Passengers will also have the right to un-board a delayed flight
after an hour of sitting on a taxiway, for a full ticket refund. This is just a few of the
changes that will be made, the list could go on and on of the positives included with
regulation.

You might be interested to know how deregulation is affecting the common taxpayer
economy. Well, I will tell you. Since the September 11th attacks of 2001, the industry has
lost more than $40 billion dollars and has laid-off more than 165,000 employees.
Pension funds have been canceled for thousands of employees, impacting the Pension
Benefit Guaranty Corporation. So, who do you think will pay to bailout the airline
employees on this one? That’s exactly right you and me, the average tax-paying
American. Also, would the attacks of September 11th have even occurred in a regulated
industry? I do not think so. I believe that in a government-regulated industry, the
attackers (teams of 3 –5), would not have been able to penetrate airport security, not at 1
much less at three different airports, and do what they did. Since these attacks many
people have developed a fear of flying, however with re-regulation I believe these fears
will fade away. The people will know that with the government’s involvement in the
industry, more rules will be instated and a greater level of safety will be achieved.
Deregulation has meant more competition and cost cutting, which has led to poor safety
and security measures. In the late 1990’s the White House Commission on Safety and
Security in the US Aviation Industry made a series of suggestions that the levels of
security on domestic flights be brought up to the same levels as international flights. This
was never acted upon. Our airport security remained lax and profit-driven.

One might ask, “how far should the government go to regulate and control the Airline
Industry?” I would have to say not too far. Politics is a touchy subject. I usually prefer to
stay away from it because it is always a double edge sword. I am a believer in re –
regulation, but I feel that the government should only tighten its control of the industry in
a few helpful ways. Too much government control could further tear down our economy
and society as well as the Airline Industry. I am hopeful that the government will be able
to give the industry some much-needed financial stability. Also, I would like to see them
let in some new more profitable companies that will re-invigorate the industry. I think
that the Airline Pilot’s Union could also be helped. Experienced pilots that want to move
from one airline to another should not have to take a massive pay cut and start over at the
bottom. A senior jumbo jet pilot, moving to another airline, would get a 90% pay cut and
get to fly a regional prop job! Our government needs to evaluate this situation, determine
a few rules and regulations that need be put into affect, and act on them. Without
regulation a weak economy becomes as scary one. I have always believed, during a
recession the rich will only get greedier, and wealthier, and the poor will only get poorer.
Regulation of the airlines will help slow, if not halt, this vicious cycle from becoming too
drastic for the less fortunate. War is a scary reality and people get scared of what is
coming next. We Americans are feeling a direct result of a few years too many in the
Gulf. With every Great War comes a time of recession and depression. We have felt
similar affects in the past and come out ahead. If we acknowledge and address the
problems at hand, allowing the government to re-regulate, we will come out ahead. It is
just a matter of time. Airline regulation will soon come full circle and show positive
results. I am very confident, after reading this you will make the right decision in casting
your votes, for re-regulation. Re-regulation is not my own personal idea; it is really, just
the only idea that makes sense.
 References

Peter J. Ferrara (Jan. 6, 1999) Transportation’s Airline Re-regulation Folly, ATR,

Retrieved June 11, 2009, from http://www.atr.org/transportations-airline-re-regulation-
folly-a1032.

Shirah (Dec. 29, 2005) Fear of flying? Life since Deregulation, Unbossed, Retrieved June
10, 2009, from http://www.unbossed.com/index.php?itemid=563.

Lori Ranson (Feb.2, 2001) Move Toward Re-regulation of Aviation Industry Gains
Momentum, World Airline News, Retrieved June 9, 2009, from
http://findarticles,com/p/articles/mi_m0ZCK/is_5_11/ai_69963005/pg_2/?tag=content;co
l1.