Air travel’s dangerous gamble: The growing perils of airline deregulation – Salon
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Although US air carriers took in over $ 2 trillion in revenue between 2000 and 2012, much of it untaxed, entire books have been written about the airline industry’s inability to make a profit. The topic never seems to lose its appeal for economists, consultants, academics, and journalists—each trying to crack the code on the cryptic industry. The findings are typically the same: employees are overpaid, labor unions obstinate, airplanes expensive, fuel costs volatile, economies unpredictable, and regulations restrictive; weather, recession, travel scares, and war hurt business; and competition is high because internet websites allow passengers to lock in the cheapest possible airfares. However interesting this perennial debate is, it misses a key point: some people are making big money working for US airlines, just not employees.

The evidence indicates that while US air carriers may have floundered in the immediate post-9/11 period, airline executives managed to maximize their own profits without much trouble. As it turns out, putting in a few years as an airline CEO is an excellent ticket punch on the way up the corporate ladder. And, just like Wall Street bankers, airline executives seem to believe that as long as they lock in their own take, the market will sort out the rest. Meanwhile, at the same time that airline executives furloughed employees, e…………… continues on Air travel’s dangerous gamble: The growing perils of airline deregulation – Salon
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Air travel rises with a country’s wealth. Law of nature, or can government … – CAPA – Centre for Aviation
News from Air travel rises with a country’s wealth. Law of nature, or can government … – CAPA – Centre for Aviation:

© CAPA

CAPA’s extensive country rankings database provides rich pickings for analysis of the relationship between the wealth of a country and the penetration of air travel in that country. Not surprisingly, our analysis confirms that the two are closely correlated. Countries with higher GDP per capita tend to have higher numbers of airline seats per capita.

Establishing a correlation does not indicate the direction of causality, which works in both directions. Economic wealth drives air travel, but air travel also helps to drive economic wealth. However, the correlation is not perfect and levels of penetration can be affected by geographical, political, fiscal and infrastructural factors. This leads to some countries having a significantly higher or lower number of airline seats per capita than might be expected simply from their level of GDP per capita.

Who are the out-performers, in terms of the penetration of air travel, and who are the under-performers? What are the characteristics of each group? How do the main regions of the world compare?

And what role can governments play? – in some cases, they can potentially make a significant difference.

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