Transportation GVP Robert Roach, Jr. (right) testified this week before three congressional committees about airline consolidation and the need for re-regulation.
Transportation GVP Robert Roach, Jr. testified before the Senate Committee on Commerce, Science and Transportation and called for re-regulation of the airline industry.
“It is clear that airline deregulation has failed to deliver on its promises of a stable and profitable industry,” said Roach. “Airline business plans today focus on lowering standards, eliminating services and reducing ticket prices to the bone to put competitors out of business, making a profitable industry impossible.”
Roach cited Government Accountability Office (GAO) estimates that median ticket prices have dropped nearly 40 percent since 1980, while the costs of aircraft, airport leases and fuel have increased dramatically.
“Some industries are too critical to the United States to be allowed to regulate themselves,” said Roach. “The airline industry drives $1.4 trillion in economic activity and contributes $692 billion per year to the Gross Domestic Product. It is too vital to the nation’s commerce to be ignored, taken for granted or left to its own destructive ways.”
The IAM's complete testimony is available at www.goiam.org/mergers.
Mon. June 21, 2010
By removing the regulations the quality of maintenance,training of crew and service levels are now at the mercy of profit. We have seen a race to the bottom for the lowest cost to maintain train or provide service. The Executives has been very good at making sure they are protected from any down turn in the market, golden parachutes and benefits that have increased exponentially. The travel has benefited from a lower fare but the service and safety has been compromised. Using bankruptcy as a negotiating process has bent labor over a barrel and taken any ability for share holders to hold executives responsible for the failure of any real leadership. It was once a proud career and model of safety. Now it is not something you can depend on as a career and flying what you think is a main brand has so many sub-contractors and foreign, unlicensed or employees that have not been back round checked, that the safety of air travel has been place into question.Fri. June 18, 2010
I have been reading stories on Brother Roach\\\'s testimonies. I understand how important the Airline Industry is to our membership and I applaud these efforts. I wish that our Union could could direct some of this attention to the Trucking sector. LTL Trucking has suffered a similar fate in the name of \\\"Deregulation\\\". When Bro. Roach comments that the Airline Industry is too important to our national economy to be left to it\\\'s own devices, I agree. I also believe that the same must be said for our nation\\\'s LTL Trucking Industry. If our Union finds that we have enough interest in the Trucking sector to warant a closer look and more attention can be brought to bear on our plight in Trucking. All of the same ills that the Airline Industry suffers from also plauge LTL Trucking. Keep up the good work Bro. Roach. If you\\\'re ever in NJ, please look us up. On behalf of 1800 loyal IAM members , we salute you. George Anis, Shop Steward Dist 15, Local 447Thu. June 17, 2010
De regulation of our nations airlines was the worst thing that could happen to the industry, its costumers, and most especially its workers. Deregulation destroyed Eastern Airlines and we watched many others followed in its path to doom, all the while many congressional leaders were praising their downfall as good for the country as it promised lower fares. But instead we wee air fares soaring and little and littler service and what service is left has an added is cost to flying costumers. Airlines today offer cattle car comfort rather than a pleasant , no hassle, ride. More often than not, you can\'t get there from here except through their hubs and forget it if you go to a city they don\'t serve. Today, the big airlines are eating other big airlines all the while gobbling up huge profits at the expense of costumers and airline employees alike. Its way past time to rectify this particular past congressional mistake which has cost the nation and airline workers so dearly.