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American Airlines Ex-CEO Wants to Kill JetBlue

Bob Crandall may not work for American Airlines anymore, but he's still an industry guru and when he talks, people in the air travel business listen. This week, Crandall made a speech at a trade meeting suggesting that the answer to the airlines' recent spate of money troubles might be a return to government regulation. Oversight would likely be a death knell for the popular cut rate carriers like JetBlue and Southwest.

If, as Crandall proposes, the Airline Deregulation Act of 1978 were to be reversed, carriers would have to charge fixed fares and reduce the total numbers of flights on individual routes. Regulation would reduce delays and eliminate the need for extra fees, all while improving customer service.

The plan clearly has its drawbacks, but it's hard to argue with Crandall's overall point that the industry's projected $6.1 billion loss this year proves that changes need to be made. Though government oversight might mean higher fares and fewer flights, at least we won't have to pay $2 for a Coke, right?

Related Stories:
· The Case for Re-Regulating the Airline Industry [Wired]
· Airlines coverage [Jaunted]

[Original Photo: Vincent®]