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A Very Special Panel Will Try Really Hard to Fix the Airline Industry

November 14, 2009 at 12:29 PM | by Victor Ozols | 0 Comments

It's been a tough couple of decades for the airline industry, but things are finally looking up, thanks to a "special panel" created by the U.S. Department of Transportation. The AP reports that Transportation Secretary Roy LaHood said Thursday that the panel will come up with a plan to fix the industry, which has suffered billions of dollars in losses amid slackened demand, fluctuating oil prices, and cutthroat competition.

In a dynamic that has played out in one form or another for years, airline unions are seeking greater government involvement in a system they say has become dysfunctional, while airline executives argue that they need fewer regulations so they can compete as global companies against European and Asian carriers.

One thing both seem to agree on, though, is the need for a new air traffic control system in the U.S. based on GPS technology instead of the current radar system, and that the government should pick up the whole tab. This seems likely to be a major point of contention going forward, as the government is fine with upgrading the ground-based systems, but thinks the airlines ought to shell out up to $20 billion or so to equip their own jets with the NextGen technology.

Should the airlines have to pay their share to use the new air traffic control system, or should the government - i.e. the taxpayers - spring for the whole shebang, since it will be a public benefit? I personally don't know, but if it's as important as it seems, it might be best to get it done now, and let the inevitable financial squabbles unfold after we have a 21st century air traffic control system worthy our our nation. When it comes to airline safety, you oughtn't dither.

[Photo: BBC]

Related Stories:
· DOT to Create Panel to Fix Airline Industry [AP via USA Today]
· Airlines [Jaunted]

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