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September 5, 2008 10:54:08 PM CDT

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Ex-CEO Revives Dreaded 'R' Word for Airlines

Posted Jun 14, 08 2:35 PM CDT in Glossies,  Business 

(Newser) – The man who brought frequent-flyer and hub-and-spoke to airlines has a plan to fix the industry—with the dreaded "R" word as its centerpiece, Wired reports. Yes, former American CEO Bob Crandall wants the government to re-regulate: "It's time to acknowledge that airlines are more like utilities than ordinary businesses," he said, and suggested the following:

  • A role for feds to set prices, which should cut down on fare wars that make flying unprofitable.
  • Change labor law to make union strikes illegal and mandate binding arbitration.
  • Bigger planes, which would cut out those 50-seaters—but also the number of daily regional flights.
  • Overhaul the air-traffic control system.

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"It's time to acknowledge that airlines are more like utilities than ordinary businesses," former American Airlines CEO Bob Crandall says.   (Getty Images)
"We have failed to confront the reality that unfettered competition just doesn't work very well in certain industries," ex-American CEO Bob Crandall says, as "demonstrated by our airline experience."   (AP Photo)
Former American CEO Bob Crandall says re-regulation might be the best way to get the airline industry back on solid footing.   (AP Photo)
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