Re: The economy - a new era?

[k hanly <khanly@xxxxxxxxxxxxxxx>]

SInce I am against private enterprise I would opt for allowing only publicly
onwed non-profit airlines. One of the problems with deregulation together
with privately owned airlines is that the most profitable routes are well
served but other areas are served poorly or not at all.. Competition drives
down fares on high traffic routes especially for cut-rate airlines that only
serve high trafffic routes. This not only drives many airlines to bankruptcy
and the resultant costs but also drives down wages, results in cuts by major
airlines on  less profitable routes or alternatively increased fares to
cities served by just one airline.
   Under regulation, at least in Canada, northern and other less populous
areas got regular air service because airlines only got high traffic routes
by agreeing to service low traffic routes. A market driven system ensures
poor service to sparsely populated areas and smaller cities.

Cheers, Ken Hanly
----- Original Message -----
From: "Eubulides" <paraconsistent@xxxxxxxxxxx>
To: <PEN-L@xxxxxxxxxxxxxxxx>
Sent: Tuesday, February 10, 2004 6:26 PM
Subject: Re: The economy - a new era?


> ----- Original Message -----
> From: "David B. Shemano" <dshemano@xxxxxxxxxx>
>
>
>
> If airline deregulation was not a success, in your view, what do you
> propose to reregulate?  Do you propose to go back to the pre-1978 era,
> where "industry capture" was an art form and the CAB actively prevented
> new entrants and price competition in the name of the public interest?  Or
> do you propose nationalization and a single airline owned by the federal
> government?
>
> David Shemano
>
> ====================
>
> Hell, why stop at nationalization; some of the corps. want the WTO to
> regulate the allocation of routes and landing slots and other stuff not
> already in GATS transport annex. Just imagine the computer programs for
> solving all those "traveling salesman" problems for divvying up market
> shares.........
>
> Ian