Profile: pauline frommer
This is pauline frommer's Profile page. Use it to view pauline frommer's comments, other users' replies to these comments, and comments pauline frommer has endorsed.
What's Happening Now
Pauline, could you point me to a specific example of when a government regulation has stepped in to regulate and make industries more efficient, while offering lower costs and more options for consumers?
I’m quite interested to hear, as this is my focus in a lot of my research, and I have had much trouble finding examples.
I also think it should be noted that a lot of airlines do follow some of these rules on their own, and would most likely lose out on a lot of business without adopting such options. That being said, if I would like to travel on the cheap, realizing that it could come at a cost of worse customer service, in a lot of situations, I’d be willing to live with poorer service for lower prices.
Actually, there are over 50 US air carriers to choose from, so although the airline industry is not perfectly competitive, it certainly is not monopolistic. Since the end of the CAB (that is, since the beginning of airline DEregulation) air travel has become much more competitive and fares have dropped dramatically. According to the GAO, fares fell by 30% (adjusting for inflation) between 1976 and 1990 because of deregulation, and have fallen another 25% since 1991. Here’s an interesting article about the lower costs and greater availability of air travel due to airline deregulation: http://www.econlib.org/library/Enc/AirlineDeregulation.html
No comments
Thank you to Ray La Hood and the others at the DOT for putting forward these sensible rules. I would be VERY much in favor of:
-Requiring carriers to reimburse baggage fees when luggage is delayed or lost (and defining how long a delay is on a piece of luggage)
-Setting one set of minimum customer service standards for all airlines that fly within US airspace (a LONG overdue step)
-Refunding ticket costs when there’s a significant delay (the time limits suggested seem reasonable to me)
-Requiring carriers to disclose the history of flights before a ticket is purchased
I also agree with others who have suggested that if the airline changes your itinerary after you’ve paid, you should have the right to get a full refund on that trip.
I think these are appropriate for both foreign… more »
For those arguing that regulating the industry will raise prices, I’d suggest they look at the history of other regulated injuries. Often the changes industry have had to implement to comply with government regulations have led to them becoming more efficient organizations. And in these cases prices have gone down not up.
Remember, the airlines are not just carrying cargo, they’re transporting human beings. And it’s important that there be enforceable standards for how these humans are to be treated when in the sky. I, for one, am happy to see the end of this “Wild West” of the American airline industry. « less
You make an excellent point! I hope this is also considered by the DOT
Regina: no one expects perfection. But the way slots are allotted at airports has created monopolies in many markets. So there is, in reality, no “competition” which would solve the problems consumers are having in the air. Its time for the government to step in and make sure that passengers are treated respectfully and that codes of conduct are standardized across the industry.
If you look at the history of other industries you’ll find that government regulations have not caused prices to rise. In fact, regulations have forced these industries to be more efficient and prices have actually dropped. So I think this argument is a spurious one.