Airline Deregulation Was a Factor in the Holiday Airline Mess
Matthew G. Andersson The Washington Post
Hundreds of passengers wait in line on Tuesday regarding baggage-claim issues with Southwest Airlines at Baltimore-Washington International Marshall Airport in Baltimore. (photo: Marvin Joseph/WP)
As passengers find out that many shortcomings exist in our nation’s airline system, they might not appreciate that the airline “meltdown” affecting millions of travelers around Christmastime was completely avoidable. The problem goes back to 1978, when the airline industry was deregulated, and competition and profits were prioritized over basic public-utility goals.
By removing government oversight concerning how airlines service routes and charge prices, the marketplace was thought to be a better “regulator” of customer service levels. This has turned out to be largely false. As Southwest’s pilot union has reminded the public, the company has recently distributed hundreds of millions of dollars as stock dividends rather than investing it into the company. If you’re a shareholder, this might be satisfying; if you’re a passenger stranded at an airport over the holidays, you might wonder how senior airline management is making decisions.
The government is almost certainly going to step back into a regulatory role, and its first priority should be setting rules concerning how airlines prepare for disruptions to normal operations. This is not unlike regulating banks to have sufficient “reserves” to cover unexpected financial emergencies.
Matthew G. Andersson, Clearwater, Fla.
