Essay about Case – The U.S. Airline Industry Public Support

1379 Words Oct 21st, 2013 6 Pages
Case – The U.S. Airline Industry Public Support

August 26, 2013

Arguments In Favor of the Federal Government Providing Support to the U.S.
Airlines
“To preserve the continued viability of the United States air transportation system” is the title of a bill introduced before congress, by Rep. Don Young (R-AK), September 14, 2001, in response to the
September 11 attack. The title of the bill is the overriding argument justifying federal support to the U.S. airlines. “If planes don’t fly, the whole economy shuts down,” said Sen. Jay Rockefeller (D-WV).
Airlines play a crucial role in facilitating commerce, providing jobs, and bringing the people of geographically distant communities closer together. Specifically, proponents’,
…show more content…
Federal support does not make more people fly. Demand has to do with the public’s perception of the safety and security of air travel, less spending due to economic downturn, and less need to meet in person for business due to technology such as video conferencing.
Funding the airline industry would limit public funding for competing alternatives to air travel, like trains and video conferencing

Regarding 9/11,
 Federal funding forces an airline to maintain unprofitable, scheduled routes prior to 9/11. This condition was set in the name of getting airlines back to “business as usual.”
 Airlines faced difficulty before 9/11. The major carriers were struggling against increased competition from smaller, more efficient, cost-effective competitors.
 The FAA’s order to ground all airplanes came after major airlines grounded their own planes at their own volition. Other air carriers most likely would have followed suit without the FAA’s order.  Compensating airlines for reduction in passenger demand due to 9/11 is no different than the risks the airlines face every day. The potential business risk of terrorism had been known for years prior to 9/11. Executives understood that highjackings and crashes tend to promote negative perception about safety and air travel. The airlines, not the government, should pay





the consequences when the terrorists breached security. Reimbursement to airlines is an