This paper will try to look at various issues that surround the regulation of the airline industry by the government.
1.Is the regulation from the government necessary again?
The regulation from the government is necessary at the airline industry. The reason as to why the government should regulate the airlines is because of lack of uniformity and decrease in quality of services. If the government could regulate the industry, this be avoided since there will be a fair playing ground in the industry. This would also encourage various airlines to concentrate on safety matters and equip the aircrafts with required systems by the law.
According to Aarons (1996) the USAF B737-200 clashed killing all 34 on board and the sources say that the aircraft was not equipped with all systems required by the civil regulation, (FDR, CVR, TCAS 11or WDS AND GPS). If this aircraft was equipped with the above systems, the accident could not have occurred.
2. How far should the government go in tightening or loosening its control over the industry?
The government should control only the fare and airport charges nationwide. This would help in unifying the great competition affecting smaller airlines from larger airlines. Some areas have few passengers than other areas and if an airline monopolize in those routes they may run at a loss.
The government should standardize the charges depending on the weight of the aircraft and which airfield the airline is flying or operating from. The government should not be interfering with the airlines marketing strategy. (Economic Council of Canada, 1999)
3.How have the events of the September 11 attack affected your decision on airline Regulation?
After the September 11 attack, airlines were affected as many people feared to fly and the effects were felt in other areas as the incoming flights reduced drastically in fear of more attacks.
Through the government regulation, people were assured of safety as the government established a board to investigate the matters regarding the attack. No airline would claim to be safe than the other because they should all follow set rules. After the attack, only the strong/bigger airlines were able to ferry passengers in the country because they were able to make more flights in given period for they could afford to reserve some seats for security personnel, this favored them affecting smaller airlines.
In one incidence, a passenger was found with a pistol on a flight to, the airline’s public relations manager said would take the matter to ensure that the security at the airport was tightened. (Air transport news, World Air news magazine february1994)
4.How do war and a weak economy change your perception of government regulation?
When war engulf a country, there is a possibility of disruption of flight schedules which makes some areas becomes partially or completely inaccessible. If there is no government intervention, the airlines suffers losses. But if the government regulates the economy may stabilize which comes as relief to the affected airlines.
When the growth of the economy slows down and the strength of the currency weakens, cost goes up including fuel, the airlines fare goes up as a result. There is need for government regulation in this case in order to slow lower the cost of fuel operation.
Partial regulation by the government is important to put some kind of control in the industry. This would be in line with protecting the interests of the passengers and the interest of the airlines.
Aaron, A. (1996). CFTI in Dubrovnik. Business & Commercial Aviation international, August 1996.
Economic Council of Canada, (1999). Responsible Regulation. An interim Report, August 1999.
World air news, (2004). Air transport news. February 2004.