The article mentions the underlying problem. In a competitive market, prices go to marginal costs. As long as there is an empty seat in a piece of equipment with enormous fixed costs, there is pressure to cut prices.
Airlines can also cut costs. I just read in the WSJ that one airline is only giving blankets on international flights. They can also cut maintenance ... we don't want that, but it might be happening & certainly would happen more often without regulation. Markets cannot work in that environment. Yes, you are right that the airlines were "coddled" before deregulation. The treatment was successful, but the patient is near death, if not dead. In the end, the taxpayer will be left paying the costs. David, you might be the only honest libertarian left in the US. Those in power are "pork libertarians" -- pork for me and my friends, to hell with the rest. -- Michael Perelman Economics Department California State University Chico, CA 95929 Tel. 530-898-5321 E-Mail michael at ecst.csuchico.edu
