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I urge you to check out my latest ABCNews.com column. I talk about what air travel could be like when oil hits $200 a barrel (and yes, apparently, that could well happen in the next year or so). The $200 oil scenario has got some people thinking: was flying really so bad before airline deregulation? And, is it time for some heroes to step forward? Check out the column, here. |
FareCompare.com » RickSeaney.com » My ABCNews.com Column: Airline/Oil Disaster - Wow |  |
May 14, 2008
My ABCNews.com Column: Airline/Oil Disaster - Wow
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Rick, your ABC column tackles the dont-go-there subject of the agere-regulation of the airlines. My worry is not so much the loss of the discount fare which I think will always be there, but of the power of the carriers to gouge business flyers senseless should the form of regulation of yore return. But its not a black or white choice. There are many “gray’s” available.
There are many industries that are stabilized with a loose regulatory framework rather than the rigidity of the regulated structure of the airline industry before 1978. Commodities markets, banking, and even agriculture (which needs a little tweaking) are just a few of the industries we have forgotten how much government and trade associations establish frameworks to mollify price volatility.
The focus of air transportation policy for the last 30 years has been on the consumer. At some point though, especially if nobody can make a profit at oil out past 150 a barrel, the policy focus will have to include the financial health of the companies if we want any industry at all in the future.
Comment by Steve Filson — May 14, 2008 @ 1:25 pm