I’ve heard and read a lot of words about today’s flying experience. Good is seldom one of them. Flying today involves standing in line after long line, sitting in uncomfortable seats, dealing with exhausted or indifferent airline employees, and keeping you fingers crossed that bad weather or scheduling problems don’t delay or cancel your flight altogether. The prices appear to be relatively reasonable, until you add in the fees for all the amenities that used to come with your ticket. What happened to airline travel, and what can be done to improve it? That’s the question behind “Why Flying Is Miserable (And How To Fix It)”. Economist Ganesh Sitaraman reviews the history of over 100 years of government policy towards the airline industry, how it led to our current situation, and discusses possible solutions for improving the airline experience.
In the 1920s, the American airline industry was in its infancy. Government officials recognized that they needed to take steps to keep passengers safe and support and to grow the industry, but also recognized that they didn’t want to create either a national airline under government control or let a private oligopoly dominate routes and control fares. After several attempts, the government set up a regulatory framework that managed competition, regulated fares, and authorized airlines to fly routes.
Government regulations helped the airline industry to expand and thrive after World War II; since airlines couldn’t compete on price, they competed against each other on services and amenities like food and inflight entertainment. But government regulation also guaranteed high fares, stifled innovation, and discouraged new airlines. By the late 1970s, politicians and economists pushed for deregulation of the airline industry, arguing that it would lead to lower fares, more flights, and better ways of doing things.
Deregulation did lead to new airlines competing and cheaper fares - for a while, anyway. As time went on , though, many new airlines were bought out by existing ones, major airlines lowered fares to stifle competition, and employee unions were made to make concessions on wages and benefits to keep airlines solvent. Airlines made profits in the good years, which they sunk into stock buybacks; when business went bad, as in after 9/11 or during the COVID pandemic, American taxpayers had to bail them out.
Ganesh makes a compelling case that the airline industry as it stands isn’t sustainable, and offers several possibilities for change. He feels that nationalization of the industry still isn’t the answer, and so offers some ideas that would allow for a more resilient industry dedicated to providing the public a vital service. Whether any of these suggestions can and will work will depend on us, since the first step will be for the public to demand better than the status quo from a government more inclined to listen to big donors than to the voters.
Ganesh takes on what could be a complicated subject and explains it in terms accessible to the layperson. For the complexity of the topic, the book is a quick read, and provides some interesting insights and possible solutions. The biggest takeaway from “Why Flying Is Miserable” is that Americans have always been innovative, and that spirit of innovation will be the key to come up with a better flying experience for everyone.