Only fly domestic?

John Bloom thinks some airlines need to be liquidated and others need to just fly domestic. He may have a point, but unfortunately he fails to make it in the piece.

No doubt government subsidies and handouts have kept airlines afloat that should have shut down long ago. After 9/11, government bailout money put the twice bankrupt Midway Airlines back in the air after it shut down. That business plan didn’t work, and so they’re resurrecting themselves as a USAirways express carrier (third time’s the charm?).

But giving up international flying isn’t the panacea that Bloom makes it out to be. While there isn’t “some rule that says United, American and Delta are REQUIRED to fly to Moscow and Hong Kong and Sydney?” they certainly should if the route is profitable and shouldn’t if it is unprofitable. And most importantly, they should be subject to the discipline of the marketplace instead of propped up by the government. Then we’ll really know we have the best air transport system worth buying.

About Gary Leff

Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel - a topic he has covered since 2002. Co-founder of frequent flyer community Milepoint.com, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »

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