WHY FLYING IS MISERABLE

A study of how deregulation of the airlines led to less competition, reduced services, and lower profitability.

There was a time when flying was an enjoyable adventure. Then it became a routine. At some point, it became a minor torture of labyrinthine procedures, shrinking space, and lost luggage. How did this happen? Sitaraman, a law professor, director of the Vanderbilt Policy Accelerator for Political Economy and Regulation, and author of The Great Democracy, traces the problems to the Airline Deregulation Act of 1978. In the decades prior to the 1970s, airlines were viewed as a public utility that should be regulated by the federal government, but the neoliberal wave changed that thinking. It worked for a while, but eventually there was a series of takeovers and consolidations, reducing competition. Now, the four big carriers—Delta, American, United, and Southwest—focus on the most profitable routes, and many smaller cities receive minimal services, if anything. Flight reliability is patchy, and customer dissatisfaction is at record levels. The business itself is prone to instability, with the major companies often recording perilous losses. Sitaraman’s solution is a return to government oversight, with regulation of prices and a licensing system to ensure that all cities receive service. “Regulation is often the only way to avoid capitalism’s abusive tendencies while harnessing its benefits,” he writes. The author is aware that regulation can generate problems, but he believes that a light touch from the regulators would work. He is not always convincing in his proposals, but his thesis that the current model is not working is valid. In any case, this short, pithy book makes many insightful points about the business of flying and the role of government in general.

With careful research and clear thinking, Sitaraman outlines a plan to ensure that the airline business works for everyone.