Machinists Call for Airline Re-Regulation

Everyone knows that de-regulation fosters price competition, and that
means lower airline ticket prices for consumers, so it's a "good
thing," right? After all, the most noble goal is to provide reduced
prices over mundane things like passenger comfort, right? And very
body know that government regulation is a "bad thing," right?

If the competition starts charging passengers for pillows and
blankets, it will ripple through the other air carriers, and ticket
prices will fall commensurately across them all, right? And if one
airline in it's attempt to increase revenues reduces leg-room so that
it can carry more passengers in a given aircraft, the other's will
have to follow suit, or become priced out of the market, so ticket
prices fall, right? Competition frees airlines to self-regulate; how
can that be bad? So why is Congress being asked to re-regulate
airlines?




http://finance.denverpost.com/mng-de...ChannelID=3197
WASHINGTON, May 7 /PRNewswire-USNewswire/ -- The International
Association of Machinists and Aerospace Workers (IAM) today urged
lawmakers to resist appeals to approve additional airline
consolidation, calling instead for measured re-regulation of fares
and capacity as the only way to ensure safe and reliable air
transportation in the United States.

"Limited re-regulation is the only long-term solution for an
industry that is continually seeking government assistance," said
IAM General Vice President Robert Roach, Jr., at a Senate Commerce
Committee hearing on the state of the airline industry. "This
industry is simply unable to turn away from pricing its product
below the cost of providing it, further perpetuating the chaotic
spiral that brings us here today." The IAM's complete testimony is
available at http://www.goiam.org/issue.cfm?cID=12828 .

"Airlines today compete by cutting standards, eliminating services
and reducing ticket prices to the bone, which makes a profitable
industry impossible," said Roach. "The Government Accountability
Office estimates that median ticket prices have dropped nearly 40
percent since 1980, while the costs of aircraft, airport leases
and fuel have increased dramatically."

"When an industry essential to the national economy can no longer
function, it is the responsibility of elected representatives to
step in and provide the necessary guidance and stability," said
Roach.

The IAM is the largest airline and rail union in North America,
representing more than 170,000 Flight Attendants, Customer Service
Agents, Reservation Agents, Ramp Service Personnel, Mechanics,
Railroad Machinists and related transportation industry workers.
Additional information about the IAM is available at
www.goiam.org/transportation.

Source: International Association of Machinists and Aerospace
Workers


http://www.goiam.org/content.cfm?cID=12868
Merger Watch Video

http://www.goiam.org/content.cfm?cID=12882
Washington D.C., May 7, 2008 - The International Association of
Machinists and Aerospace Workers (IAM) today urged lawmakers to
resist appeals to approve additional airline consolidation,
calling instead for measured re-regulation of fares and capacity
as the only way to ensure safe and reliable air transportation in
the United States.

On May 9, 10:36*am, Larry Dighera wrote:

If the competition starts charging passengers for pillows and
blankets, it will ripple through the other air carriers, and ticket
prices will fall commensurately across them all, right? *And if one
airline in it's attempt to increase revenues reduces leg-room so that
it can carry more passengers in a given aircraft, the other's will
have to follow suit, or become priced out of the market, so ticket
prices fall, right? *Competition frees airlines to self-regulate; how
can that be bad? *So why is Congress being asked to re-regulate
airlines?

Because some people make a great deal of money off gov't regulation.
In fact, that is what gov't regulation does. It disrupts the natural
forces of the market and directs artificial amount of money towards
certain people. In this case the union dudes are afraid they aren't
getting enough right now.

-robert
.

On Fri, 9 May 2008 16:11:13 -0700 (PDT), "Robert M. Gary"
wrote in
:

On May 9, 10:36*am, Larry Dighera wrote:

If the competition starts charging passengers for pillows and
blankets, it will ripple through the other air carriers, and ticket
prices will fall commensurately across them all, right? *And if one
airline in it's attempt to increase revenues reduces leg-room so that
it can carry more passengers in a given aircraft, the other's will
have to follow suit, or become priced out of the market, so ticket
prices fall, right? *Competition frees airlines to self-regulate; how
can that be bad? *So why is Congress being asked to re-regulate
airlines?

Because some people make a great deal of money off gov't regulation.

Which 'people' mad a great deal of money due to airline regulation in
the past?

In fact, that is what gov't regulation does. It disrupts the natural
forces of the market and directs artificial amount of money towards
certain people.

There's little question that government regulation "disrupts the
natural forces of the market," but I don't see that as a bad thing.

I'm afraid I don't understand how government regulation "directs an
artificial amount of money towards certain people," unless your
referring to corrupt government regulators and politicians.

In this case the union dudes are afraid they aren't
getting enough right now.


I think it's more a matter of those currently employed by the airlines
fearing the inevitable firings usually associated with
consolidation/mergers.

"Larry Dighera" wrote in message
...

Everyone knows that de-regulation fosters price competition, and that
means lower airline ticket prices for consumers, so it's a "good
thing," right?


You're right that it's a good thing, but you're wrong when you say everyone
knows it.



After all, the most noble goal is to provide reduced
prices over mundane things like passenger comfort, right?


No.



And very body know that government regulation is a "bad thing," right?


You're right that it's a bad thing, but you're wrong when you say everybody
knows it.



If the competition starts charging passengers for pillows and
blankets, it will ripple through the other air carriers, and ticket
prices will fall commensurately across them all, right?


No.



And if one
airline in it's attempt to increase revenues reduces leg-room so that
it can carry more passengers in a given aircraft, the other's will
have to follow suit, or become priced out of the market, so ticket
prices fall, right?


No. Other carriers might tout their greater leg room and some customers
might choose to pay a bit more for it. That's the beauty of a free market.



Competition frees airlines to self-regulate; how
can that be bad?


It's not.



So why is Congress being asked to re-regulate airlines?


Because it's easier than satisfying the customer.

Larry Dighera wrote:


I'm afraid I don't understand how government regulation "directs an
artificial amount of money towards certain people," unless your
referring to corrupt government regulators and politicians.

Well to start, think about the recent in-group discussions on E85 and
its biofuel ilks. I wouldn't call the politicians "corrupt" per se (not
breaking any laws -- or at least they don't have to !), but simply
effective (at getting elected).

Or for a more formal treatment, try Economics: Private & Public Choice,
by Gwartney, Stroup, Sobel, Macpherson... Ch 6 "The Economics of
Collective Decision Making", or most any other college freshman Econ
text....

So why is Congress being asked to re-regulate
airlines?

Because the union stands to make a great deal of money by asking for
protection.
--
Jay Honeck
Iowa City, IA
Pathfinder N56993
www.AlexisParkInn.com
"Your Aviation Destination"

On Sat, 10 May 2008 13:51:21 GMT, "Jay Honeck"
wrote in tLhVj.103766$TT4.6321@attbi_s22:

So why is Congress being asked to re-regulate airlines?

Because the union stands to make a great deal of money by asking for
protection.


How do you think the union stands to profit? Do you believe the union
will raise the members' dues if their bid for re-regulation is
granted?

Please explain your conclusion by disclosing your analysis?

"Larry Dighera" wrote in message
...
On Sat, 10 May 2008 13:51:21 GMT, "Jay Honeck"
wrote in tLhVj.103766$TT4.6321@attbi_s22:

So why is Congress being asked to re-regulate airlines?

Because the union stands to make a great deal of money by asking for
protection.


How do you think the union stands to profit? Do you believe the union
will raise the members' dues if their bid for re-regulation is
granted?

Please explain your conclusion by disclosing your analysis?

Are you too young to recall the basic economics of the airline industry
before deregulation?

"Maxwell" luv2^fly99@cox.^net wrote in :


"Larry Dighera" wrote in message
...
On Sat, 10 May 2008 13:51:21 GMT, "Jay Honeck"
wrote in tLhVj.103766$TT4.6321@attbi_s22:

So why is Congress being asked to re-regulate airlines?

Because the union stands to make a great deal of money by asking for
protection.


How do you think the union stands to profit? Do you believe the union
will raise the members' dues if their bid for re-regulation is
granted?

Please explain your conclusion by disclosing your analysis?

Are you too young to recall the basic economics of the airline industry
before deregulation?


Bwawhahwhahwhah!


Like you'd know, kookie boi.

Bertie

"Jay Honeck" wrote in news:tLhVj.103766$TT4.6321
@attbi_s22:

So why is Congress being asked to re-regulate
airlines?

Because the union stands to make a great deal of money by asking for
protection.

Oh brother,

Fjukkwit.

Bertie