IP: Airline economics

[David Farber <dave () farber net>]

> From: Russell Nelson <nelson () crynwr com>
> Date: Sat, 22 Sep 2001 08:03:04 -0400 (EDT)
> To: farber () cis upenn edu
>
> Dave, I'm wondering if people realize what we're doing to the airline
> industry.  In a free-market economy, a sudden 25% downturn in business
> is the same as if, in a command-and-control economy, one of four
> businesses was told to shut down.  Is that really what we want?  Have
> we really decided to permanently curtail our flying by 75%?  If so,
> then an airline bailout should only recompense them for the cost of
> being forced to not fly during the week of 9/11.  Any money in excess
> of that is simply the American taxpayers being forced to buy airplane
> tickets against their will -- and not actually receiving the tickets
> with which to fly!
>
> If, on the other hand, we aren't serious about this decision -- if
> instead we're just a bit afraid and really do plan to continue flying
> at the previous level -- then we ought to get off our butts and start
> flying before any more airlines go out of business.  Midway, a North
> Carolina regional airline, has already shut down operations.  They
> were in Chapter 11 as it was.  But many other airlines' finances are
> shaky, and more may go out of business.  This is how it should be in a
> free market, but people should realize this: the next time you want to
> fly, you'll have fewer choices of flights going to fewer cities at a
> higher cost with less customer service.  Because that's what we're
> telling the airlines to give us.  And what we ask for, we're gonna get.
>
> --
> -russ nelson <sig () russnelson com>  http://russnelson.com
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