Thu, May 08, 2008
So It's Come To This...
In case you had any doubts
how worried airline workers are about looming industry
consolidation... on Thursday the International Association of
Machinists and Aerospace Workers (IAM) took the radical step of
urging lawmakers to resist appeals to approve additional airline
consolidation,and instead consider measured re-regulation of fares
and capacity as the only way to ensure safe and reliable air
transportation in the United States.
"Limited re-regulation is the only long-term solution for an
industry that is continually seeking government assistance," said
IAM General Vice President Robert Roach, Jr., at a Senate Commerce
Committee hearing on the state of the airline industry. "This
industry is simply unable to turn away from pricing its product
below the cost of providing it, further perpetuating the chaotic
spiral that brings us here today."
The IAM's complete testimony is available at the FMI link
below.
"Airlines today compete by cutting standards, eliminating
services and reducing ticket prices to the bone, which makes a
profitable industry impossible," said Roach. "The Government
Accountability Office estimates that median ticket prices have
dropped nearly 40 percent since 1980, while the costs of aircraft,
airport leases and fuel have increased dramatically."
"When an industry essential to the national economy can no
longer function, it is the responsibility of elected
representatives to step in and provide the necessary guidance and
stability," said Roach.
The IAM is the largest airline and rail union in North America,
representing more than 170,000 Flight Attendants, Customer Service
Agents, Reservation Agents, Ramp Service Personnel, Mechanics,
Railroad Machinists and related transportation industry
workers.
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