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Old Feb 26, 2009, 6:03 PM
ChrisH ChrisH is offline
Former Airline Employee (NOT OFFICIAL REP)
 
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I few opinions I have on this.
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Originally Posted by jimworcs View Post

1. Allowing foreign ownership and competition within the US market. The US is the largest trading nation in the world. If all other countries adopted the protectionist approach taken to protect US airlines, US Inc would go bankrupt. The US economy depends on international competition. What possible justification is there for US airlines to get special protection.
I have no problem, personally, with foreign competition, within the U.S. Airline industry. I do not believe, however, that current U.S. based airlines, should be allowed under foreign ownership. I believe American companies, should remain American owned. If a foreign country wants to open/start a new carrier, in the U.S., are begin operating within the U.S., with an already established airline, I have no problem with that. I do think that some provisions have to be made, however, to protect labor, if this is allowed, and truly make it about allowing competition.

The fear that many airline employees have (specifically pilots, and their unions), is that if foreign carriers are allowed to operate point to point, within the U.S., that the current U.S. major airlines will use that as an opportunity to circumvent labor. The fear is that, for example, if British Airways is allowed to operate flights within the U.S., American Airlines (or any other U.S. Airline) will enter into a partnership/codeshare with them. American will sale tickets, but British Airways will operate their aircraft, and utilize their crew. The two airlines would share in the profits. The next thing you know, you'll be purchasing tickets on American Airlines, but it will say "operated by British Airways". This doesn't do anything to breed competition, as now the two airlines are operating with each other, as partners, sharing in the profits ... but it is American labor, that gets the shaft, because the foreign carriers are using their crews, and their aircraft.

IF foreign carriers are allowed to operate, domestically, within the United States, provisions must be made, to prevent this, and truly make it about competing for the customers, and the routes, and not entering into partnerships, and codeshares, which does way with the whole competition, and allows foreign labor to operate what was/should be American labor's job. There is already enough of this going on, and we don't need more.
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2. The bankruptcy laws, in particular use of Chapter 11, needs to be substantially revised and the management team responsible for taking an airline into Chapter 11 should be replaced and no exit payments. Any bonuses paid in the two accounting periods prior to entering Chapter 11 should be repaid. No airline should be able to enter Chapter 11 more than once in 25 years.
I 100% agree, and this needs to be the case for ALL companies, not just the airlines. Management used the bankruptcies, after 9/11, to gut labor contracts, yet management continues to receive their million dollar bonuses, on time, without question. This has got to end!

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3. The fortress hubs should be broken up, the same way ATT was broken up in the 1980s. No airline should be able to command more than 15% to 20% of any market.
I too agree. This would also breed more competition between the airlines, to hold the better of the market share.

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4. Protection for passengers against predatory and unfair contract terms should be introduced, regulating how airlines should treat passengers, and what the reasonable expectations of passengers should be. This should include restrictions on holding passengers hostage on airplanes for hours on end for the convenience of the airline, specific rules on how airlines should respond to weather delays, cancellations, etc. A total ban on overbooking flights.
I agree with most of this. Keep in mind, most overbooking is done, because there is a hirtorical percentage of people who do not show for certain flights. When all do show, compensation is given. If overbooking is stopped, fares will increase. I recently watched a TV show, in which it was stated that if airlines did not overbook, we would be paying nearly twice as much, for fares. Maybe this is what we need, however. In the day of regulation, fares were more, but service much better. I do think many changes can be made, but I just don't think that all of these changes can be made, without some cost being passed along, to the customer. There defintely needs to be a reworking of fare rules, and contracts of carriage, so they aren't so anti-customer. I think the airlines should do away with so many fare categories, and sale all seats, with the same fare rules, at the same fares --- even if it means higher prices. I do agree that there needs to be better handling of certain situations, including delays, like weather, even if outside of the airline'c control. There should be a limit on how long a plane can sit, with passengers, before being required to allow passengers to deboard the airplane.