What a strange coincidence. Within a few minutes of each other I received two emails — one from a senator tipping me off to a new GAO report that basically says airline deregulation worked. And the other from a well-known loyalty program expert complaining that the best fare he could find to Europe in economy class was $12,000.
It’s hard to find anyone to argue that airline deregulation didn’t work. It lowered prices and increased competition, which is exactly what it was intended to do. That seems to be the conclusion of the government report, too.
But there’s another side to deregulation. In a hands-off environment, an airline can charge whatever fare it wants to. So a $12,000 fare in economy class is completely allowable, if that’s what the market will bear.
The GAO report focused mostly on prices and competition, which are measurable criteria that are important. What is less measurable (but equally important, I think) is the quality of the experience — issues like customer service and cabin comfort. On those counts, it is difficult to find anyone who would say things are better today than they were in the 1970s.
By the way, I have a feeling we’ll be seeing a lot more of those $12,000 fares in the months and years to come.
Christopher Elliott is the author of Scammed: How to Save Your Money and Find Better Service in a World of Schemes, Swindles, and Shady Deals. Critics have called it “eye-opening” and “inspiring” — it’ll “grab your attention and won’t let go.” Order your copy now on Amazon, Barnes & Noble or iTunes.
Elliott is consumer advocate 
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