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Aero-politics: September 2008 Archives

Nonagenarian Kahn's wisdom: no reregulation

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a051_Alfred-Kahn.jpgFrom the past, a blast. Deregulation, like success, has many fathers when times are good, but those fathers and architects sometimes fade intro the woodwork when airlines are caught up in real turbulence. Not so for Alfred Kahn, who is one of the few to earn the title and one of the few to stand consistently for what he believes in. As chairman of the old Civil Aeronautics Board, he led the movement to deregulate US airlines in 1978. Now 91, he's still active and sharp of mind and tongue, and spoke this week to the world gathering of airport types at the Airport Council International's big global summit in Boston. Kahn reminded the 2,000 delegates, "The industry in the last 30 years gave the public something it had not received before: high quality, space, and low cost. It catered to a variety of demands and abilities today so that we had an enormous spread of fares. It offered the people upgrades such as business class and frequent flyer miles."

But Kahn, who now teaches at Cornell University, noted that increased air traffic has led to congestion, which has led to delays and unhappy flyers and that has led to calls for government reregulation.

 

Anniversary alert: airmail is ninety

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airmail_poster_fullsize.jpgIt's perhaps not the most auspicious date to be marking an anniversary. After all, today is September 11, the seventh anniversary of the terrorist attacks that changed the United States and changed aviation forever. But for aviation, it's another day to mark: airmail service in the United States is 90 years old, and it's to be marked by the flight of three vintage planes across the country, starting on Long Island and taking 15 days to get to San Francisco. The planes include a Boeing 40C from 1928 as well as two Stearmans. All are veterans of early airmail service.

 

Midwest Airlines, the Milwaukee moneypit, saved again

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060523a_lg.jpgGood money, bad money. Midwest Airlines, which used to be Midwest Express and is sometimes dubbed the bottomless money pit of Milwaukee, has saved itself from bankruptcy with yet another investment by TPG, the Texas Pacific Group. It's about $30 million. What's different this time is that it's lured another airline, Republic Airways, into putting money into its future, even though the last airline it won over, Northwest Airlines, had to write off all of its $213-million investment in Midwest (for a 47% stake). Republic puts in $15 million in a one-year loan, and agrees to another $10 million if Midwest meets some performance criteria. But Republic also gets a home for the dozen 76-seat Embraers it has been trying to place since it had to take them back from Frontier (which hasn't avoided bankruptcy) in late June.

 

About this Archive

This page is an archive of entries in the Aero-politics category from September 2008.

Aero-politics: August 2008 is the previous archive.

Aero-politics: October 2008 is the next archive.

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