It's Always Our Fault

So now it's our fault. It always is, I guess. Oh, I didn't tell you what is our fault, did I. Why, it's the plight of the airlines going bankrupt and hemorrhaging money like banshees. Our fault? Whose bright idea is that? No less than a Mr. Dave Castelveter of the Air Transport Association. This is what was reported by NPR Radio. http://www.npr.org/templates/story/story.php?storyId=93376602
“Dave Castelveter, of the Air Transport Association, says consumers share in the responsibility for the airline crisis. He says airlines have to keep airfares below their market price in order to remain competitive online. When consumers visit a travel Web site like Expedia or Travelocity, they often view flights by clicking on a button that says "list flights by lowest fare."
While airline executives would like to make a profit, they're busy trying to stay on the first page of those search results — and they can't do that if they hike their fares. This is part of the reason they've begun adding "hidden" costs for checked luggage and aisle seats, for example. Those ancillary fees do not affect a flight's price position on Travelocity and Expedia.”
So, I guess that if we the consuming public wouldn't try to always find the best deals and just take whatever happens to be offered, the poor airlines wouldn't be in this position, or at least would be in better shape than they are. If we'd just stay away from the “flights by lowest fare” button, the CEO's of the various airlines wouldn't have nearly as much explaining to do in their board meetings.
Somehow, I don't buy that. The question was raised as to why airlines just didn't raise fares to cover expenses. The reply was that if they raised fares, the planes might not be filled. In the same piece, it was said that the airlines are losing money on each fare. Now, I'm no economist, but I would think that if every fare represents a loss of $100 or more (which they said was the case), the fewer fares that lost money, the better.
OK. Let's take another look at this. Wouldn't it be better to fly fewer fares that were profitable than to fly a lot of fares that were losers? Why not raise rates, ground some flights, lay off some employees, and be profitable? I know that's easy for me to say, not being an airline employee. However, I've had my share of that kind of thing, and have also had to do that as management. It isn't easy. It demands, as the politicians say, tough choices and tough decisions (and the guts to carry them out).
Of course, it would also be beneficial to make the flying experience something more than what a cow might experience being herded from one pen to another. But that's another blog.