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Publication: European Stars and Stripes Friday, October 28, 1988

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   European Stars And Stripes (Newspaper) - October 28, 1988, Darmstadt, Hesse                                You cwt m  Cut rot fakes Good -77?e Friendly Styes of deregulation by h. Josef Hebert associated presso n the Day Vicki Belcher wanted Lolly from Washington la Miami an Eastern airlines advertisement proclaimed a $189 roundtrip Tare with Advance Purchase. But Belcher her Mother and aunt needed a Light right away to attend an Uncle s funeral and the cheapest fare they could get was almost $600 each. We just did t go says the Washington librarian lamenting the $1,800 Cost for the three tickets. The reason for the divergent fares the airline deregulation acl which ended government controls Over airline Lares and routes and was designed to bring Competition to the airline Industry and lower Lares. On the 10th anniversary of president Carter s signing of the measure air travel bargains still abound but so do shockingly High fares for travellers who do not Havo the luxury of planning far ahead or being flexible. And the Cost of travel no longer has anything to do with How Many Miles one Hies. While a recent traveler booked a restricted vacation Light on Braniff airlines that took him from Washington to los Angeles to Orlando fla., and Back to Washington Lor �364, an unrestricted roundtrip coach fare from Washington to Charleston 5.c., on Piedmont was j390 and one from Washington to Chicago on United airlines was $498. And after a decade of air travel without strict government controls there also Are increasing complaints about the concentration of the Industry around a Lew Mega carriers and about the dominance they Wield in and out of some cities and through links Wilh commuter airlines to entire regions of the country unprecedented congestion Al Busy airports and in the skies surrounding them with some Airport planners notably in Boston resorting to High Landing fees to keep out smaller aircraft concerns among aviation safely with critics both in and out of the Industry complaining that the Federal government is unable to keep up with traffic growth and Industry fluctuations to assure a continuing High level of safety. Predictions of catastrophe and a Facto re regulation unless airports Are expanded new airports built and the Federal aviation administration s air traffic control system is modernized. Complaints that airline service continues to deteriorate especially in Rural areas while prices Are allowed to soar unfairly High in some markets especially Between Busy Hub airports dominated by one or two airlines. A realization by Industry insiders that the Days of aviation entrepreneurs Starling an airline irom scratch and taking on the Competition has Long passed the victim of the same  unless you go with one of the major carriers in a Market sharing arrangement it would be extremely difficult to Start something from scratch today says Harold Hap Pareti who has done it twice first with people express and later with presidential airways. Perhaps nothing Marks More clearly the first decade of deregulation As the emergence of the Mega carriers that dominate air travel within the United sales. They Are the product of 3vi years in which the transportation department approved 21 straight airline mergers. At the end of 1987, Iho country s five biggest airlines carried nearly 70 percent of the traffic according to Industry figures. Single airlines account for eight of every 10 flights in and Oul of St. Louis Minneapolis Pittsburgh. Memphis and Charlotte. One airline controls More than half of All flights in and Oul of 18 Hub airports across the country says an analysis by the Boeing co. While there is Little hunger Lor a return o government controls on fares and routes sen. John Dantorth r mo., during a recent hearing on airline concentration echoed he sentiment of other members of Congress and even otherwise staunch supporters of deregulation the concern that is before us is whether Competition is truly working. And if it is networking what Are we supposed to do about  rep. Norman Mineta d-calif., chairman of the House aviation subcommittee agreed the question which the new Congress and the next administration must explore in depth Are first whether there is still enough compete align to sustain the consumer benefits of deregulation and second if not what should be  Alfred Kahn the former civil aeronautics Board chairman and one of the architects of airline deregulation remains one of its strongest defenders but also concedes some elements of today Smarkel oriented Industry have gone awry and urgently cry Oul foral least some government  nevertheless says Kahn the overwhelming majority of passengers Are clearly reaping huge benefits and deregulation Overall has brought to the overwhelming majority of travellers in abundant measure most of the benefits that we  there have been dozens of reports and papers that draw the same conclusion. Virtually no one espouses bringing airline fares and routes Bach under government control. Some Industry insiders suggest that since the airline Industry has so dramatically reorganized itself committed itself to a free Market environment end adopted such Complex systems of established fares Down to a sophisticated seat by seat fare Structure that to try to bring Back government control would Only Lead to chaos. And supporters of deregulation Are Quick to lick off what they Call its overwhelming benefits last year 450 million passengers boarded commercial airliners compared to 275 million in 1978. In another 10 years the number is expected to reach 800 million. With nine out of 10 air travellers flying on some sort of discount fare the average Cost of travel on an Airliner has dropped 13 percent Over the last decade if inflation is taken into account. According to the transportation department. Deregulation has allowed air travel to became commonplace with nearly three of every Lour adult americans having flown Al least once in their lifetime. According to a Gallup poll 52.5 million adults took an airline trip in the United sales last year. A plan Load of passengers takes off from an Airport somewhere in the country on an average of every 4.8 seconds. We have indeed become a vehicle of mass transportation says Jim Landry vice president and counsel for the air transport association the Industry group that represents the major airlines. Several to Tuples of deregulation contend that travellers and the Economy As a whole have immensely Ben filled. According to one by the Brookings Institute an estimated $10 billion in 1988 dollars has been saved because of airline deregulation about a third in lower Lares and the rest in better service and increased productivity. But if service has improved. It was t very evident in 1986 and on into 1987 when air travellers almost were threatening revolts because of Long and frequent delays and shoddy service on some airlines. Delays attributed to air traffic problems alone Shol up 25 percent in i9b6 and complaints irom irate airline customers to the transportation department quadrupled. In those Days travellers on Northwest. Eastern or Continental All airlines struggling to Deal with massive mergers had a Chance of one in two of gelling to their destination within 15 minutes of. Schedule. The Industry acknowledged the problems. Service is deteriorating complaints Are rising the skies and airports Are crowded and the entire system is creaking As we seek to accommodate the Waves of customers brought to our ticket counters by deregulation and cheap Tares american airlines president Robert Crandal told an audience in june 1987. Page 16 the stars and stripes Friday october 28,1986  
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