The Op-Ed That Wasn't (March 2023)

AN INDUSTRY BEING VECTORED TOO CLOSE TO THE SUN
 
WARNING: THE WAX ON THE WINGS OF DEREGULATION’S PROMISE IS MELTING
 
As I listened to last week's Senate hearing with Southwest's "meltdown" presumed to be at its "heart", many emotions/frustrations were running through my head. Except for one panelist, nothing was interesting. Nothing was consumer friendly (see below) - even though the words consumer protections were part of the hearing's title.
 
As I listened, I took to the keyboard - created my own version of the Icarus Syndrome - only Icarus would be an industry sector and not a person created in Greek Mythology.
 
A REFRESHER ON THE SYNDROME
 
Exploring your mind: The Icarus Syndrome often tends to occur in individuals with a special talent. In general, it occurs in circles of political, economic, sports, ... They are convinced that they’re unique and that their capabilities can’t be matched by anyone.
 
BILL, WHY DO YOU CARE? OR, YOU HAVE NO SKIN IN THIS GAME.
 
I have no real standing. Just a teeny, little fish with a teeny, little voice in Washington's ocean of nonsense. But in recent years, projecting whatever thought/theory has often become truth for some in the game. During the hearing some said that the subjects covered are important conversations to be having in a FAA Reauthorization year.
 
AND THAT IS WHAT SCARES THE HELL OUT OF ME!
 
For virtually my entire career, I have advocated for the network carriers. I never believed that Washington accorded them sufficient credit for their economic generation by serving communities large and small. They have a lot less of that "small" argument now.
 
I believe in United CEO Scott Kirby's theory of cost convergence. I wrote about it 15 years ago, only that it was critical that the network sector bring costs down in order to compete with Southwest/ULCCs. Kirby's 2023 version has UA and others increasing costs within all line items on the income statement - particularly the labor line. Both versions of cost convergence work to impede competitive incursions. That is what Kirby is NOT saying.
 
When it comes to increasing costs, this industry is being vectored too close to the sun. As costs go up, so should fares if airlines operating today wish to sustain profitability. Those 2022 margins were damn impressive despite headlines suggesting the contrary.
 
Bill McGhee, Charlie Leocha, and the Flyer's Rights group - just keep pushing for all things consumer except for competition. After all, competition has little to do with disciplining fares the consumer pays - right? And is a consumer guarantee, right? Yes, there should be protections for the consumer that address current concerns, but the issues before us are much bigger.

For the airlines and big labor, maybe Cliff Winston calling for cabotage or privatizing airports is where we should go to create competition where some competitive void is all but guaranteed. Privatizing ATC too.

Back to writing my book,