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Tuesday, March 9, 2010

What happens when government gets involved in the Airline Industry? Same thing that happens when it gets involved in anything
Via Associated Press


Continental Airlines plans to cancel flights rather than risk stiff fines under new federal rules designed to punish carriers for delaying passengers.

CEO Jeff Smisek said Tuesday the result will be that passengers will have more trouble getting to their destinations.

A spokesman for the U.S. Transportation Department said airlines can avoid fines by doing a better job of scheduling flights and crews.

Under a Transportation Department rule taking effect next month, airlines can be fined up to $27,500 per passenger if planes are delayed three hours and passengers can't get off.

Smisek said many passengers on delayed flights "really want to go to LA or Mumbai, but the government by God says, 'We're going to fine you $27,500.' Here's what we're going to do: We're going to cancel the flight."

Normally, what happens is, customers purchase a service from a company. The customer either likes the service, or they don't like the service. If they don't like the service, the customer doesn't return, instead giving their business to an alternate provider of the same service.

That's how it works. Competition is always the driving motivation for business to offer low prices and quality service.

Continental's response is exactly the response we can expect from hospitals as well, once Obamacare is forced upon us. Hospitals and healthcare providers, not wanting to deal with government demands and red tape, will simply choose to not offer life saving services, which will result in people dying.

I can't wait!

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