… as the airline landscape in the U.S. and globally continues to evolve. This isn’t your father’s airline business, though one prominent Democratic legislator seems to think it may be time to return to those glory days of yesteryear. That would be pre-1978, when the feds controlled the business of airlines and travel by air was an elite experience – not the business model of today which allows for families to afford to traverse the skies and get off the more dangerous highway system.
Congressional Quarterly Today reports that Rep. James Oberstar (D-MN), chair of the House Transportation and Infrastructure Committee, calls the Department of Justice’s okay of the merger “regrettable†and that he is “disappointedâ€. CQT quotes Oberstar, “Airline consolidation brings consumers and communities fewer choices and less competition, usually leading to increased fares and reduced levels of service. That runs directly counter to the promise of deregulation. I believe it may be time for Congress to rethink its vote in 1978.â€
When it comes to aviation, Oberstar is generally viewed as an industry ally, if for no other reason than he is one of the more knowledgeable forces regarding the industry on Capitol Hill. He has never liked airline mergers, and points to their potentially negative impact on service to local communities – a valid concern. Yet, putting the federal government in charge of market forces – or stifling them – doesn’t seem like the right path.
What may be more appropriate is for the folks in Washington to recognize that the airline business is truly a global enterprise. Unleash the business from foreign ownership rules; allow more alliances; encourage Open Skies agreements. The federal government plays an important role in ensuring aviation safety and security. We don’t need it to return to the era of telling the industry who can fly where and when, and for how much.
Over time a new business model for airlines may evolve. Thinking that the model is going to come from Capitol Hill is fantasy.
Thanks for reading. jfi