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Nationalizing the Airlines?

Discussion in 'BBS Hangout' started by MadMax, Nov 27, 2002.

  1. MadMax

    MadMax Member

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    http://www.nytimes.com/2002/11/27/b...00&en=921690a627d58c43&ei=5062&partner=GOOGLE

    Airlines' Official Warns on Security Costs
    By THE NEW YORK TIMES


    ASHINGTON, Nov. 26 — The president of the airlines' trade association said today that unless the industry's problems are fixed soon, it might be necessary to nationalize the airlines.

    Carol B. Hallett, president of the Air Transport Association, speaking at an industry luncheon, said that such a step would have costs that were "intolerable," but that the burden of security fees was destroying the airlines.

    Fees that are supposedly charged to passengers are essentially paid by the airlines, she contended, because the surcharge imposed by the federal government that is supposed to pay for additional security prevents the airlines from charging more for tickets and therefore cuts into airlines' revenue. The government, she said, "must assume the full cost and responsibility for assuring protection of the aviation system against terrorist attacks."

    She said the government "must reject the false premise that the airlines and their customers can or should bear this national defense burden."

    Failing to fix the root causes of the industry's dire situation could mean that the nationalization of the industry becomes necessary, Ms. Hallett said.
     
  2. Major

    Major Member

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    What a load of crap. Yes, it will cut into the airlines ticket sales, and yes, the burden of the costs will be shared by both the airlines and the customers. Yes, this is a bad thing economically for the airlines.

    But nationalizing the airlines? That's just ridiculous. If they can't turn a profit, some of them just need to go under, reduce their number of flights and/or raise prices. There's no reason that an industry that has no real alternatives (Americans simply don't and won't use trains just because airlines raise prices $10 or $20) can't be profitable on its own.
     
  3. mateo

    mateo Member

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    Less govt control, please. Thank you.
     
  4. Ubiquitin

    Ubiquitin Member
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    HELL NO! IF THERE'S SOMETHING I HATE WORSE THEN MONOPOLYS, IT'S GOVERNMENT MONOPLYS!!! If this were to happen I am boarding the first ship to London.
     
  5. VooDooPope

    VooDooPope Love > Hate

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    If you think England is better you might want to book your passage right now. :p
     
  6. vj23k

    vj23k Member

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    I think you were joking, but that didn't convey much of a sense of sarcasm...Anyway, I just want to make sure that you know that British Airways is a National Airline...
     
  7. No Worries

    No Worries Member

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    Let the invisible hand of the market work its magic.
     

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