The fact of the matter is that airlines are only partially deregulated. They are not too different from the giant electric utilities that use massive grids to distribute power. There is a regulated portion of the system that is the airport infrastructure and the airtraffic control system. This traffic grid is controlled by the FAA, the military and municipalities.
Over the past few weeks, travel commentators have been beating the “airline regulation” drum. However, let’s be careful throwing the regulation word around. Most travelers are actually looking for basic consumer protections, not re-regulation.
It’s difficult to find a credible airline expert who doesn’t favor common-sense reregulation of the domestic airline industry. No surprise, considering that the tide is turning against a laissez-fare government.
The airlines need you. In an open letter to customers published late yesterday, the chief executives of 12 domestic airlines urged customers to help them stop the oil speculation and bring fuel prices under control. Here’s a translation.