It’s no secret that airlines have struggled financially this year. We’ve seen droves of reports citing quarterly loss, and we’ve all enjoyed the affordable deals they’ve been advertising. But the government wonders if the airlines’ struggle could be remedied through re-regulation, and the debate isn’t a happy one.
Last night, Transportation secretary Ray LaHood put together a conference with airline executives and officials that would review the situation and create solutions. The goal was to develop a plan for future aviation.
According to Reuters, LaHood’s conference covered issues pertaining to finances, safety, labor, and operations.
Congress and lawmakers are paying more attention to the airline’s scramble for consistency, due not only to the financial strain, but also to consumer complaints about the deterioration of service, late departures and arrivals, and widely publicized mishaps.
Government officials have begun to question the business model of the airline industry, but executives are pushing back, saying they simply need allowance to run their own businesses.
Airlines are nervous about re-regulation, and don’t think that financial struggle in a weak economy should result in government involvement.
US Airways Group Inc. Chief Executive Doug Parker wrote a letter in place of his attendance to the conference, saying that airlines “prefer to live without” government-imposed taxes and fees. He also cites experts who say that the industry will make financial progress in 2010.
© Cheapflights Ltd Andrea Mooney
