Fly? Not I
As most people know Independence Air is shuting down (story here) That is terrible news for Knoxville as it will mean we are once again be without a low cost carrier and a flight to DC will again cost $450 dollars or more instead of $150.
That situation thought raises the point that is on my mind today though. Do the masses have a right to air travel, and if so why? I would say No and because business has to make a profit. Understand I am one on the masses too in this case. My point is airlines are going out of business for all sorts of reasons, but the bottom line is they are not making money with tickets. I can not and do not expect businesses to operate without making money. If it cost $800 for someone to fly somewhere then it does. Sure I would love to fly for $80 instead of $800, but the real point is that if I fly for $80 the company may not be around for me to get home or if I need to take that same flight next month. Fuel costs are up, salaries increase, jets need repair, yet we all still think we should fl for next to nothing, and no I do not work for a airline before everyone sends hate mail.
Simply, air travel is a convenience, and one that I love too mind you, but it is that a convenience. It is not a right, it is not a guarantee, and consumers are the ones that ultimately have to decide what it is worth to them. If all the unprofitable carriers go away, which will not necessarily just be the low cost ones as South West seems to be doing well , then the market will dictate price and the ones that offer the prices that allow them to stay in business and their customers are willing to pay will be the ones that survive. I do not want to see Federal bail out loans, no compete laws, or any other gerrymandering. Simply let the market work itself out, which may take 5 or 6 years at this point, and then let the people decide if air travel is something they are willing to spend money on.
I will miss Independence air, and I hope Knoxville gets another low cost carrier to help keep prices down short term, but I know long term the market will determine what happens and until air line tickets revenues match expenses the industry will suffer.
[...] Simply, the US is becoming a nation that is no longer driving many of the industries we created. That is the nature of change and development, what will be interesting to see is how this will impact what has historically been US industries in the future. I do not expect the US to be a world leader just because we started or developed something, I expect us to be world leaders because we are innovative and creative. What I wonder is if the US as a whole, i.e. the base citizens that comprise the nation, is as driven to maintain it’s leadership and role as innovator as it has in the past. Part of that is the willingness to allow markets to take their course (as it current is occuring with the domestic air carriers – our views on that here) and let the chips fall where they may. America has to allow things like that to happen where those that innovate will be strengthened, and those that are stagnent will step aside. [...]
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