While private industries in all sectors of the economy rise and fall based on the principle of survival of the fittest, should we attach the same laissez faire policy towards the airline industry? A lot of economists would go along with this proposition.
However, there is a need of caution in the case of airlines. While soap or cigarette companies may fall and go, airline industry has two issues to consider. The first is the safety and security of passengers and the second, oligopolistic character of the industry.
Safety and security should be prime determinants of a good airline followed by passenger handling and food. Passengers, however, look to the second determinant more and are not fully aware of the security and safety aspects.
India had changed over to a centralised government-run system of airport security after the hijack of an Indian Airlines plane in 1999 from Kathmandu, which has been satisfactory as no major security breach has happened since then. When 9/11 took place in New York in 2001, all the eight flights hijacked were domestic. The International Civil Aviation Organisation (ICAO) had cautioned the US government about poor security at its domestic airports – which was then being managed by the airlines themselves – where they employed the cheapest security personnel. Since then, they too have switched over to government security.
25/12/14 Sanat Kaul/Deccan Herald
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However, there is a need of caution in the case of airlines. While soap or cigarette companies may fall and go, airline industry has two issues to consider. The first is the safety and security of passengers and the second, oligopolistic character of the industry.
Safety and security should be prime determinants of a good airline followed by passenger handling and food. Passengers, however, look to the second determinant more and are not fully aware of the security and safety aspects.
India had changed over to a centralised government-run system of airport security after the hijack of an Indian Airlines plane in 1999 from Kathmandu, which has been satisfactory as no major security breach has happened since then. When 9/11 took place in New York in 2001, all the eight flights hijacked were domestic. The International Civil Aviation Organisation (ICAO) had cautioned the US government about poor security at its domestic airports – which was then being managed by the airlines themselves – where they employed the cheapest security personnel. Since then, they too have switched over to government security.
25/12/14 Sanat Kaul/Deccan Herald
