A Stitch in Haste

A Stitch in Time Saves Nine...But Haste Makes Waste

A collection of real-world libertarian, individualist and laissez-faire rants on law, economics, politics, culture and other current events
by an average, everyday lawyer & investment banker and part-time pop scholar.

Fly the Fairly-Priced (and Safe) Skies
(Why aren't you reading this at the new website?)

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Here's a quick litmus test to see whether someone subscribes to a reality-based theory of economics or languishes in a wishful-thinking la-la land.

Which is better:

A. An airline that "oppresses" its passengers by imposing service-specific fees (second checked bag, curbside check-in, forward economy seat, child flying alone, etc.), clearly identified surcharges (most notably for fuel), fewer flights and more crowded planes, or

B. An airline that "oppresses" no one — because it's bankrupt.

If you chose Option A, then you are a reality-based capitalist — congratulations. If you sit around kvetching about how there ought to be an Option C, then you are a La-La Lander. Good luck — you'll need it. (If you chose Option B, then you're just a pathetic sociopath who warrants no further consideration.)

"A la carte" fees for air travel are a perfectly sensible and hardly oppressive pricing system. Why should every passenger pay for a service that only a fraction use? How is forcing some passengers to subsidize others not itself the "oppressive system"? If you disagree, then why not take the next logical step and charge people (perhaps via taxes) for not flying at all, in order to subsidize those who do? (Oops — never mind.)

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As for the FAA-AMR debacle, let's keep some hasty stitches in mind:

(a) This is not a case of "fixing faulty wiring" on hundreds of "unsafe" planes. American insists (and there is no reason to doubt them) that there is no cognizable safety risk whatsoever. The company is merely capitulating to FAA (and media) paranoia in the wake of a scandal at the bureaucracy itself, catalyzed by a notoriously activist politician, Representative Jim Oberstar, seeking gratuitous headlines to look impressive to his ignoranti constituents.

(b) Speaking of which, the last time I checked the FAA was the government. To call this national headache a "market failure" due to "greedy capitalists" is the height of self-delusional policy hysteria.

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*Regarding the bankruptcies, it's worth noting that ATA avoided shutting down as long as it did only by sucking at the military's teat. Skybus, meanwhile, was run by a gaggle of incompetent jackasses who thought they could make money by selling tickets for $10 (and $57 million in taxpayer money — how Amtrak of them). Good bye and good riddance.

But large, well-run companies can go under too, if they become unwilling — or unable — to run their businesses rationally. "Kick'em when they're down" is a federal air travel policy that could only make sense to a moron like Jim "airports to nowhere" Oberstar.

UPDATE: More on Oberstar from the Wall Street Journal.
Posted by Kip on 10 April 2008


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