airfares so high!!

[DandyDon]

FAA controls airlines and guess what?

I don't guess you're old enough to remember when the feds totally controlled fares and everything, before deregulation? That transition was an interesting ride.

 

[DjDiverDan]

"FAA controls airlines and guess what? it is run by ex airline employees which means it is a good old boys club which means the airlines can do anything they want and get away with it (rats are guarding the cheese)."

This is what is known as regulatory capture - when whatever industry is being regulated "captures", or gains control of, the agency doing the regulation. Guess what? It happens with EVERY regulatory agency! If you have a state regulatory agency responsible for setting utility rates, I'm willing to bet that a majority of the commissioners come from the electric utility industry. The FCC is dominated by companies in the communications industry, and the FDA is dominated by people from the Pharmaceutical industry. It is the natural and entirely predictable consequence of politics - the industry being regulated has the most to gain or lose, depending on which way the regulations go, so they spend their lobbying money making certain that the regulations work for them - keeping prices high enough to make a profit, imposing standards and requirements sure to prevent competitors who might challenge their business (see, for example, municipal regulation of the taxi industry, and how those regulations are structured to keep Uber and Lyft out of the markets). And why voters are idiots for believing any politician who claims that we need more government regulations.

 

[DjDiverDan]

I don't guess you're old enough to remember when the feds totally controlled fares and everything, before deregulation? That transition was an interesting ride.

If you want a shocking introduction to the REAL costs of government regulations, compare airfares from before and after deregulation of the airlines.

 

[ggunn]

If you want a shocking introduction to the REAL costs of government regulations, compare airfares from before and after deregulation of the airlines.

Correlation is not proof of causation.

 

[mobeachlovers]

I usually don't book this far in advance for February but found a pretty decent deal from STL in February at $488 pp, and even better deal when booked together with hotel..

 

[DjDiverDan]

Correlation is not proof of causation.

True. In this case, the causation of the lower fares was competition among airlines - competition which had been stifled by regulation of the industry, because that suited the companies being regulated. And if you want a demonstration of how competition affects airfares, all you need do is examine the history of Southwest Airlines and what the FAA refers to as "the Southwest Effect." Southwest was established as a purely intrastate airline, serving only Dallas, Houston, and San Antonio (with Austin added a little later), precisely to avoid regulation of routes, airfares, landing slots, etc., by the CAB (the Civil Aeronautics Board, dissolved by the Airline Deregulation Act of 1978). It was the CAB, at the insistence of American Airlines, that sought to prevent Southwest from flying out of Love Field in Dallas, but Southwest prevailed in its legal claim that the CAB had no statutory authority over Southwest, as a purely intrastate airline. After deregulation, in EVERY market in which Southwest entered, airfares came down by an average of over 40% when Southwest arrived. You can claim that correlation is not proof of causation, but when there is an unbroken pattern of correlation, over and over again, causation is a pretty reasonable inference to be drawn.

 

[cvchief]

 

[Dave Dillehay]

I disagree with most of the complaint about deregulation and airfares. As you may know I travel back and forth from Houston on United at least twice each month (usually choosing my dates on airfare and do the one way ticket). Most of this year I have had 1 way tickets for less than $200. Given the Mexican taxes that means United gets less than $135 and probably loses money on that trip (or at least on me).

Of course when they are way up I go through Cancun. And on rare occasion pay a big premium.

However, I have several other business activities in Germany and Asia with over 4 million logged miles on FF programs—and was alive and flying before deregulation. In reality the service has gone way down but there is NO credibility to the claim that airfares have skyrocketed in General. IMHO


Dave Dillehay

Aldora Diver

 

[DandyDon]

deregulation. In reality the service has gone way down but there is NO credibility to the claim that airfares have skyrocketed in General. IMHO

My thought was that fares have generally decreased since deregulation, at least until recently. With all of the airline mergers, there are fewer US airlines to fuel competition - so many markets are going up. Southwest was a fun, discount airline in the 1980s featuring stewardesses in hot pants and all, but things have changed. They're seldom cheapest now until you factor in free luggage handling.

 

[janieb]

Thanks for all the feedback, and yes I've been looking for about 2 months and usually do book further ahead...but I missed the magic window somehow and was wondering during if there is some special occasion going on that has jacked up the fares I've done the planes, buses and ferry trek before to cancun and probably will again. I guess delta is doing a great job of maximizing their monopoly in the southeast...We've already booked our condo, otherwise I'd be waiting. Never again will I book the room till I have a more reasonable airfare! Wish me luck know and happy diving yall.