San Jose Mercury News, July 6, 2007

Letters to the Editor: 

Requiring airlines to compensate travelers for poor service would hurt consumers (Editorial, July 2). Since 1978, airline deregulation has decreased fares 10 to 18 percent, a savings to passengers of $5 billion to $10 billion per year. Inflation-adjusted industry salaries have grown 5 percent and employee benefits 69 percent. This improvement suggests that the government would be wise to loosen further its regulatory grip on the industry rather than impose rash new restrictions. Airline service is not perfect but the market weeds out companies that fail to satisfy consumers, as evidenced by the recent failure of numerous major airlines. Government undermines market forces by bailing out bankrupted companies. Consumers should voice their concerns to airlines and patronize those that best satisfy their needs. Hasty government interference would only increase fares, deteriorate service and in effect turn back the clock to the 1970s.

Mathew Piccolo, summer policy analyst, Pacific Research Institute
Sacramento