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Passenger Pricing Power

Posted May 11, 2011 11:16 AM

The Transportation Department just revised regulations aimed at protecting airline passengers. It establishes new fees and fines on airlines for bumping passengers from a flight, or holding them too long on the tarmac. One commentator thinks that while the old rules were out of whack, the new regs aren't much better. Do we need government to dictate the compensation, or could we give free market ability to passengers, allowing them to negotiate and/or accept less for being bumped?

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Guru
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#1

Re: Passenger Pricing Power

05/13/2011 3:04 PM

The Transportation Department can do whatever they want. We don't need government for a lot of things...........including this.

In order to remain profitable, airlines need to fly planes at or near capacity..............this leads to occasional overbooking. If passengers don't want to get bumped, show up early. Just that simple.

What the whiny passengers don't realize, is that new fines and fees will be directly attached to future ticket prices.

But all of this is moot, the free market is slowly being strangled...........at least in the US.

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#2

Re: Passenger Pricing Power

05/16/2011 2:23 PM

The nanny state!

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