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Airline Trade-Offs

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During the late 1970s there was much controversy regarding airline deregulation.

Most of the airlines wanted to see the system remain intact, and certainly the travel agency industry wanted the status quo. As an owner of a travel agency, I, along with most of the agents together, fought the demise of regulation.

We held that airline service would be reduced, fares would generally increase and safety would eventually become a problem because older equipment would begin to be used.

We felt that the network that took 40 years to develop would be drastically changed. That traffic to and from large cities would increase, intermediate and small cities would be forgotten, point-to-point fares would temporarily drop to cause fares to be higher to lesser cities.

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But most of all, the U.S. would wind up with a few major airlines in control of destinations and fares.

After about 10 years, what has happened?

There have been over 200 bankruptcies of airlines, many of the old stable airlines, like Western, have been swallowed up, we have an inefficient hub system, the major airlines number around 10 and now are almost in a position to control fares, passengers spend much more time in terminals, baggage is a greater problem and most of all small cities are isolated with virtually no transportation.

Is this worth a reduction of fares to and from New York and Los Angeles?

JAY BURCHETT

Newport Beach

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