Re: Re-ReGuLaTiOn Of ThE aIrLiNe InDuStRy ... or BUST???
Re-regulation is not the solution to this problem.
As long as WN has such low fares, and can continue to fly people at low cost with their hedges, the airlines will continue to lose money.
What the airlines don't realise is that WN can only fly so many planes on their hedges. yes, WN WILL fill up all of their planes, but not everyone can travel on WN's planes and the capacity will soon become filled up. Naturally, this would cause WN to add more capacity, but with cuts in the availability of aircraft, and the limits to their fuel hedges, soon they would have to raise prices too.
If the airlines don't increase prices, become more streamlined, and figure out ways to save money that the customer do not affect the customer, then the airlines will be successful. Regulation is the easy, lazy answer to a problem that needs to be fixed by the airlines themselves.
Opponents to keeping the market deregulated will claim that Southwest will expand and soon have a monopoly, but, the great thing is, that ANYONE can enter the market, if WN decides to raise its prices because it has a monopoly on the market, another airline will come in and provide competition to WN.
That is precisely why the industry was deregulated, to get rid of the bad apples, and to provide a more competitive market. Because of the low cost of oil, we are just beginning to feel the real effects of deregulation today.
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Sixteen Reasons for more E-Jets Mould's:
Air Canada, Aeromexico, Jetblue, Virgin Blue, US Airways, KLM, Finnair, Lufthansa, Royal Jordanian, Flybe, Flybaboo, Northwest, Delta, JAL, Midwest, Mokuele
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