CNN ran a piece today in which they basically say that US airlines are peeing on customers boots and telling them it’s raining.
The article argues that mergers within the US airline industry have created a situation whereby services are being continually eroded while prices are trending upwards – “even in the face of falling oil prices”.
But at the same time, “the airlines say it’s generally for the better” because the industry is more stable now (read: the remaining airlines are profitable), American travelers are more connected to the rest of the world (whatever that means), and US carriers are now able to spend more to modernize their fleets.
Many of those commenting on the article aren’t so sure about the airline’s position.
Same old story with every gigantic industry that’s turned into a cartel/oligopoly – “Less service and higher prices are actually good for you! ~TwistedAegis
Gas goes up = ticket price up = baggage fee up = profit up = top management salary and bonuses are up.
Gas goes down = ticket stays up = baggage fee continue to go up = profit up (CEO takes good credit) = top management salary and bonuses are up + few millions shares to themselves. ~Steve Chen
This is the result of monopolies. … This is why the US is years behind Europe and falling further behind every year. ~iceload9
Interestingly however, some commenters also side with the airlines’ view of things.
We fly all the time for business and personal. Is it the greatest? No. Does it stink? No. We wanted cheaper flights and deregulation, so we got it. ~tanthonyS
Considering that airlines don’t make a ton of money, I have no problem with the current situation. ~Schaefer78
What do you think? Are we now in an oligopoly situation with regard to the airline industry in the U.S.? Or would you argue that we have simply reached an equilabrium point where strong competition still exists and prices are about where they should be for the product/service provided?
And just because I found it humorous, what do you think about the video associated with the article being hosted by what appears to be a female model, while the article was written by this guy?
Read the article and comments in their entirety: Why flying stinks, and you’re still paying more