Re: Re: Re: Re: Airplanes falling out of the sky

2000-02-01 Thread Michael Perelman
Don't fly to Chico from San Francisco. Going to New York is cheaper. It wasn't before dereg. So it was not beneficial to all consumers. Brad De Long wrote: Don't any of you fly anywhere on vacation? -- Michael Perelman Economics Department California State University [EMAIL PROTECTED]

Re: Re: Re: Re: Re: Airplanes falling out of the sky

2000-02-01 Thread Brad De Long
Don't fly to Chico from San Francisco. Going to New York is cheaper. It wasn't before dereg. So it was not beneficial to all consumers. But there are a lot more of us who want to fly from San Francisco to New York. Bentham would approve... Brad DeLong

Re: Re: Re: Re: Airplanes falling out of the sky

2000-02-01 Thread Rob Schaap
Hi again, Brad, Seems to me that air safety is one place where the market gives airline executives and airplane manufacturing and maintenance executives exactly the right incentives: people aren't going to fly airplanes or airlines that crash regularly... They only have to make sure they don't

Re: Re: Re: Re: Re: Airplanes falling out of the sky

2000-02-01 Thread Brad De Long
Hi again, Brad, Seems to me that air safety is one place where the market gives airline executives and airplane manufacturing and maintenance executives exactly the right incentives: people aren't going to fly airplanes or airlines that crash regularly... They only have to make sure they don't

Re: Re: Re: Re: Airplanes falling out of the sky

2000-02-01 Thread Ken Hanly
What has been the effect of deregulation on service to smaller centers? Is travel to low traffic areas much more expensive, or non-existent. When we had more regulation in Canada permission to serve lucrative routes was contingent upon service on other routes or centers that were not as

Re: Re: Re: Re: Airplanes falling out of the sky

2000-02-01 Thread jeffrey sommers
See Robert Kuttner's EVERYTHING FOR SALE for an interesting long-view inspection of the rate of price declines in the airline industry. His data shows dramatic decrease in the rate of price drop before the onset of deregulation in the 1980s airline industry. He essentially argues that pre

Re: Re: Re: Re: Airplanes falling out of the sky

2000-02-01 Thread Eugene Coyle
The airlines MUST discriminate -- i. e. must screw business flyers. That's the only reason for "A Saturday Night Stay is required." If the airlines couldn't enforce that profits would drop sharply, followed by a shrinkage of capacity, and then a cut-back of the discounted tickets. The

Re: Re: Re: Re: Airplanes falling out of the sky

2000-02-01 Thread Eugene Coyle
Yes, Brad, the airline execs don't want to have an accident, and they hope they won't if they cut corners, but they are sure profits will benefit if they do cut corners. gene Coyle Brad De Long wrote: G'day Brad, And we have gone from having one serious commercial aviation accident per

Re: Re: Re: Re: Re: Re: Airplanes falling out of the sky

2000-02-01 Thread Michael Perelman
I have a simple question about safety. There have been quite a few accidents among the commuter lines, which replaced the majors, which used to serve places, such as Chico. Has the safety record really improved that much when the commuters are factored in? I don't know. Brad De Long wrote:

Re: Re: Re: Re: Re: Airplanes falling out of the sky

2000-02-01 Thread Doug Henwood
Michael Perelman wrote: Don't fly to Chico from San Francisco. Going to New York is cheaper. It wasn't before dereg. So it was not beneficial to all consumers. The airfare index of the CPI has risen at roughly twice the rate of the overall CPI since dereg - almost 11% in the last year, vs.

Re: Re: Re: Re: Re: Re: Airplanes falling out of the sky

2000-02-01 Thread Eugene Coyle
Yes, and de-regulated airfare has gone up much faster than electric power in the CPI.\ Gene Doug Henwood wrote: Michael Perelman wrote: Don't fly to Chico from San Francisco. Going to New York is cheaper. It wasn't before dereg. So it was not beneficial to all consumers. The airfare

Re: Re: Re: Re: Airplanes falling out of the sky

2000-02-01 Thread Brad De Long
Jim Devine wrote: I read some stats in LBO awhile back that indicated that price-deregulation didn't really lead to lower airline ticket prices. Doug? Yup, this is a long-standing LBO obsession. See other post. The dereg partisans like to quote real fares per seat-mile, which are down since