The New Airline Code : Why the Industry Must be Programmed to a Public-Private Integration
When it comes to the airline industry, we're all schizophrenics. Is it regulated, or not? Is it a public utility or a free-market product? Should we have unlimited competition, or managed capacity? Is it a publicly traded, for-profit business or a national infrastructure that should be owned by the public? Do we want rock bottom fares or service and efficiency or both? One thing is perfectly clear: the market has failed. Airlines are barely able to stay in business and aviation science is stagnant. But why, exactly? And what can we possibly do to change it? As it turns out, a lot.
The 1978 Deregulation Act is not enough. There are too many airlines all fighting for the same customers yet no other industry ranks so consistently low in consumer satisfaction. But what are the underlying structural elements that determine whether or not we have a healthy, reliable, fairly priced, modern airline system?
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March 06, 2005
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