My Op Ed Piece.
If you're flying from New York any time in the foreseeable future, avoid the American Airlines terminal at JFK. The brand new terminal, despite being quite beautiful and the billion dollars American Airlines spent on it, is a modern disaster of management. It is as if American is trying to make life miserable for its customers. To begin with the airline has very few security check points, making getting through security a long an arguous task. To compliment this, the airline has provided nice card tables for you to put your stuff on. But don't worry; you'll probably spend just as much time waiting to get your ticket as waiting through security. Instead of installing the new kiosks that other airlines like United have adopted, American has opted to go with the old style customer interaction which is almost three times as long. It is almost as if American Airlines is single handedly trying to bring back 80s style airlines. I do however recommend United Airlines as they have a very modern outlook. Of course United is in bankruptcy, along with most of the industry.
But how could an airline like American make such a colossal mistake? How come the airline that is doing is right is the one in bankruptcy? Let’s turn back the clock to the mid nineties.
Back in the 90s Northwest Airlines and Continental decided to merge. In 2000 United moved to acquire US Airways. Both deals were blocked. American Airlines however, did manage to buy out TWA in the same year. Had all three deals gone through it would have left three major airlines. Unfortunately Congress decided to block two of them, leaving us with a large spattering of different airline companies. You may ask, what is the advantage to such a consolidation, after all, it is engrained in American youth that competition is what's good for everyone. Consider this though; competition leads to lower prices, so consolidation would lead to higher prices, which is exactly the kind of thing a company in bankruptcy wants. Theoretically the heads of the 6 major airlines (Delta is the only one I didn't mention) could get together and put aside their animosity to raise prices and save the crippled industry. That is if there weren't laws against such a thing. Which hasn't stopped other industries from adopting such a practice, so why not airlines? The answer, is the flaw in capitalism that Jesse first pointed out in his post: Capitalism is not Patriotic. Simply put, the heads of these companies have too much to risk.
We often think of companies as their own autonomous bodies which act in their self interest and perpetuate the capitalist agenda. This just blatantly isn't true. Instead companies are run by men. Greedy men, who are more concerned with looking out what is best for them rather than what is best for the company (or country in Jesse's example). What's best for the individual isn't what is best for the company. These executives make their millions whether they are in bankruptcy or not (sometimes more when they're in), and there is no reason for them to risk these gains for the benefit of the company or the industry at large. What is worse, attempts to regulate both the company and industry are what has gotten us into this mess in the first place. First the regulation that prevented the large buy outs in the late 90s, and then the forcing of competitive behavior.
So the question becomes: If we can't trust laissez faire capitalism, and we do more harm than good by regulating it, what place does capitalism have in the modern world?
taken from an Op Ed piece written by Jim Tzenes to the New Yorker
If you're flying from New York any time in the foreseeable future, avoid the American Airlines terminal at JFK. The brand new terminal, despite being quite beautiful and the billion dollars American Airlines spent on it, is a modern disaster of management. It is as if American is trying to make life miserable for its customers. To begin with the airline has very few security check points, making getting through security a long an arguous task. To compliment this, the airline has provided nice card tables for you to put your stuff on. But don't worry; you'll probably spend just as much time waiting to get your ticket as waiting through security. Instead of installing the new kiosks that other airlines like United have adopted, American has opted to go with the old style customer interaction which is almost three times as long. It is almost as if American Airlines is single handedly trying to bring back 80s style airlines. I do however recommend United Airlines as they have a very modern outlook. Of course United is in bankruptcy, along with most of the industry.
But how could an airline like American make such a colossal mistake? How come the airline that is doing is right is the one in bankruptcy? Let’s turn back the clock to the mid nineties.
Back in the 90s Northwest Airlines and Continental decided to merge. In 2000 United moved to acquire US Airways. Both deals were blocked. American Airlines however, did manage to buy out TWA in the same year. Had all three deals gone through it would have left three major airlines. Unfortunately Congress decided to block two of them, leaving us with a large spattering of different airline companies. You may ask, what is the advantage to such a consolidation, after all, it is engrained in American youth that competition is what's good for everyone. Consider this though; competition leads to lower prices, so consolidation would lead to higher prices, which is exactly the kind of thing a company in bankruptcy wants. Theoretically the heads of the 6 major airlines (Delta is the only one I didn't mention) could get together and put aside their animosity to raise prices and save the crippled industry. That is if there weren't laws against such a thing. Which hasn't stopped other industries from adopting such a practice, so why not airlines? The answer, is the flaw in capitalism that Jesse first pointed out in his post: Capitalism is not Patriotic. Simply put, the heads of these companies have too much to risk.
We often think of companies as their own autonomous bodies which act in their self interest and perpetuate the capitalist agenda. This just blatantly isn't true. Instead companies are run by men. Greedy men, who are more concerned with looking out what is best for them rather than what is best for the company (or country in Jesse's example). What's best for the individual isn't what is best for the company. These executives make their millions whether they are in bankruptcy or not (sometimes more when they're in), and there is no reason for them to risk these gains for the benefit of the company or the industry at large. What is worse, attempts to regulate both the company and industry are what has gotten us into this mess in the first place. First the regulation that prevented the large buy outs in the late 90s, and then the forcing of competitive behavior.
So the question becomes: If we can't trust laissez faire capitalism, and we do more harm than good by regulating it, what place does capitalism have in the modern world?
taken from an Op Ed piece written by Jim Tzenes to the New Yorker