Jay Honeck wrote:
>
> The reason the airlines are in this mess is because Congress
> refuses to let any major airline FAIL.
>
> In a truly free
> market, the surviving airlines would feed on the carcass of a truly bankrupt
> airline, plucking the profitable routes and leaving the deadwood behind.
That's true. That's what the Free Market is all about. But the
airline industry is anything BUT a free market -- in fact, the
opposite.
> In our current dream-world of "protected deregulation", Congress keeps
> bailing out failing airlines, allowing them to continue operating at
> below-profitable levels -- which means they can continue to charge less than
> what it really costs to fly the routes, which, in turn, means that NONE of
> the airlines can charge what it actually costs to fly.
You are mistaken here. The MAJOR airlines are REQUIRED to continue
operating in unprofitable routes, whereas Regional Carriers can cut
the unprofitable routes.
> Until the Feds let Northworst and Delta fail, this situation will continue
> to get worse.
It has already hit bottom. AA is the next to go. :-)
-- Bob.
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