Obama attempts to improve the airline industry

First move was done by the Obama administration in order to improve the situation in the airline industry that was entangled because of the economic recession. There was a forum held by Transportation Secretary Ray LaHood with the aim of discussing the position of the industry and ways of economic stability for air companies provided by the government.

For the last years the industry has been staggered by repetitive crises such as the 9/11 terror attacks, the SARS virus and the current economic recession.united-737-300

According to the Air Transport Association, airlines provided the fewest seats to passengers. Moreover, more than 130,000 full-time were curtailed since 2000, for that reason airlines lost about $33 billion over the same period. Thirteen airlines filed for bankruptcy for the last two years.

Nowadays it has become very hard to function in the airlines industry, everything included in the industry undergoes negative influences. But still there is a hope that the administration or Congress will find the way to improve the situation.

“We can’t keep doing things the exact same way and expect a better outcome,” said Ed Wytkind, the president of trades department. He also added that one should think about new regulatory authority for the industry.

Pat Friend, president of the Association of Flight Attendants did not support the recurrence to the governmental supervision type that was before the airline decontrol in 1978. But still one should admit that there are aspects that need such decontrol.

As for airlines, they are not satisfied with such type of economic regulation. Moreover, airlines insist on the fact that they are already heavily regulated and taxed.

There are opinions according to which that airline decontrol had success that led to a big number of consumers because ticket prices were declined. But another question arises whether airlines offer low fares at expense of safety.

Comments are closed.