The House’s version of the FAA reauthorization bill has been on the Senate floor for the past few weeks, but it’s currently stalled (although scheduled for a cloture vote today, May 6, which if passed would move it forward for consideration by the full Senate without more amendments or if lost would hold up the [...]
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Alfred Kahn, the eminent economist and chairman of the Civil Aeronautics Board who oversaw airline deregulation in the 1970s, has published a fascinating new working paper on the AEI Reg-Markets Center site. He addresses the difference between “liberal” and “progressive” views on economic policy and regulation, and he argues that “progressivism” as defined by those [...]
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In 1929, Juan Trippe, president of Pan American Airways, was competing for the lucrative airmail contract for Puerto Rico. (At that time, holding an airmail contract was virtually the only way for a U.S. airline to stay in business.) His competitor, West Indian Aerial Express, was already operating on the line and competing for the [...]
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Posted in Evan's Commentary, tagged airports, business, competition, Merger Mania 2008, mergers, network airlines, regulation, united, us airways on April 28, 2008 | No Comments »
Now that Continental has turned down suitor United, the latter is weighing a desperation move: merging with US Airways to create the world’s new largest airline (surpassing Delta-Northwest, assuming that goes through). The airlines may announce a tie-up within the next fortnight. Therefore, it’s time for another Merger Mania 2008 antitrust evaluation.
As you’ll remember from [...]
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As I’ve written before, the failure of the FAA in the Southwest Airlines case and elsewhere seems to stem from a personnel problem. The safety inspection chain of command at the agency ignored and abetted an inspector who was consistently neglecting policies and procedures. This is not an indictment of the FAA’s collaborative approach to [...]
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Over at Things with Wings, Hubert Horan has a list of merger myths being floated by those with a narrow financial interest in consolidation.
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From the comments on this post: there’s a vigorous debate going on about whether some form of congestion would really reduce delays, given that flight schedules (for business travelers at rush or for international flights connecting to overseas hub banks at planned times) are not easily adjusted. But there’s another point I want to bring [...]
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Ben Mutzabaugh reports that politicians are wasting no time trying to horn in on the merger discussions currently underway at major airlines. The man from my former congressional district, Steve Cohen (pictured at right), has called for join Transportation Committee and Judiciary Committee meetings to address a potential Delta-Northwest tie-up. What Congress really wants to [...]
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Mike Boyd of the Boyd Group has released his 2008 airline industry predictions. Key among them: $100 oil will drive regional jets (RJs) to the desert graveyards sooner than expected; desperate “low-cost carriers” will need to cut capacity somehow; and “comprehensive network carriers” will need to improve their management of every minute. Boyd’s weekly commentaries, [...]
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The “Essential Air Service” (EAS) is back in the news, this time in an article in USA Today, which is being batted around the blogosphere at View from the Wing, Marginal Revolution, and elsewhere. If you’re not familiar with EAS, read the article first; it offers a good overview of the program. In this post, [...]
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