Well, the airlines are certainly laying it on thick that it is, but then they're trying to get more federal funds.
A friend in the industry described their basic problem this way: They all want to raise prices, but Southwest won't go along. So, they don't raise them because so many people still tell the travel agent to just get them the best rate, and they don't want to lose all those customers to Southwest. Meanwhile, Southwest keeps their costs down, mainly by treating their passengers like cattle. The other airlines try to keep up a more traditional level of service, but at the same time try to compete with Southwest on fares.
If this is correct (and I have no reason to think otherwise) then I expect the invisible hand to eventually step in and make some adjustments. Personally, I stopped just looking for the cheapest fare a few years ago. It isn't worth cramped seats, redeye flights, long delays, lost luggage, lousy food in small portions, etc. Eventually some of the airlines are going to start catering to those of us who are willing to pay just a bit more for a better experience (but a bit less than the first class rate). I think Alaska may be getting the idea there already, but I'm not sure. |
