Airline Woes and Predatory Price Fixing for All

[marmar]

from HuffPost:



Blake Fleetwood
Airline Woes and Predatory Price Fixing for All
Posted April 12, 2008 | 03:56 PM (EST)



Don't be fooled.

The bankruptcies, mergers and consolidations among the major airlines are going to cost passengers more money and make travel even more of a nightmare than it already is.

It's Economics 101: Less competition means higher prices, decreased customer service, crowded flights, and serious disruptions in the event of labor disputes or maintenance issues.

In the last few weeks, airline woes have been substantial. 300,000 passengers have had their flights canceled.

This week has been a double whammy week for the public.

More than 4,000 flights have been cancelled for maintenance problems and a number of smaller low cost airlines have gone out of business or gone bankrupt: Oasis, Skybus, ATA, Aloha, MAXjet, and Frontier.

As a result, competition in dozens of cities will disappear and there will be increased pressure on existing airline passengers because of fuller planes and higher prices.The legacy airlines- American, United, Delta, Northwest, and Continental- are frantically plotting increased consolidation. And with the massive clout they wield in Washington, they usually get what they want.

Nobody messes with the major airlines in DC. They are not allowed to fail. When one of them gets into trouble, they "reorganize" and, with large federal loans from Congress, go on as before.

No such largesse applies to smaller low cost airlines.

The US is heading for a two or three airline cartel, which will systematically eliminate all remaining low cost carriers --- Southwest, America West, Air Tran, Jet Blue and others -- opening the way for astronomical price hikes. ......(more)

The complete piece is at: http://www.huffingtonpost.com/blake-fleetwood/airline-woes-and-predator_b_96375.html

[Selatius]

1. We need another Square Deal. Time to smash these oligopolies and monopolies. n/t