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Title : Who Is Muffling The Intensity Of Airline Competition?

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Who Is Muffling The Intensity Of Airline Competition?

A Don Boudreaux missive of the alphabet to the Wall Street Journal:

Middle Seat columnist Scott McCartney writes that “The rules affair because DOT is only virtually the solely protection consumers convey inwards States air travel” (“An End to Airline Red Tape – Or Consumer Protection?” Feb. 7).

Umm, no. There’s too this thing called “competition.”

Reasonable people tin dismiss struggle whether or non contest amid airlines today could endure made fifty-fifty to a greater extent than intense. But equally long equally consumers are costless to conduct amid today’s 12 mainline States air carriers, equally good equally amid the dozens of regional as well as commuter carriers – non to lift diverse surface-transportation options – contest is non solely to a greater extent than or less other source of consumer protection, it’s a far to a greater extent than nuanced as well as reliable source of protection than are diktats issued past times bureaucrats alongside no peel inwards the game as well as who are champaign of report to political pressures.

To the extent that airline contest today isn’t equally intense equally it powerfulness otherwise be, much of the blame falls on regime – which, for example, prohibits foreign-flagged carriers from serving domestic routes. And, irony of ironies, because mandates as well as prohibitions issued past times bureaucrats growth the costs of entry as well as decrease existing airlines’ flexibility at optimally coming together the many dimensions of often-changing consumer demands, these diktats are amid the main culprits at muffling the intensity of competition.

Sincerely,
Donald J. Boudreaux
Professor of Economics
and
Martha as well as Nelson Getchell Chair for the Study of Free Market Capitalism at the Mercatus Center

George Mason University
Fairfax, VA 22030

The higher upward originally appeared at Cafe Hayek.

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