NEW YORK -- Bob Crandall, former chairman of American Airlines, is calling for some reregulation of the U.S. aviation industry.
Crandall also called for new government policies and investment in infrastructure, so the industry can find its way to financial health and provide services that once again satisfy customers.
After outlining his ideas before the Wings Club here on Tuesday, he was asked if he would be willing to lead an effort involving all parties, public and private, to find solutions. Crandall said he would be willing but "one can't just appoint oneself to head a blue-ribbon commission."
As he enumerated problems and suggested solutions, Crandall threw fuel costs out of the discussion. He said high fuel prices are not the true culprit although they do aggravate other problems.
And, he continued, mergers won't produce economies of scale for already-large companies and won't lower fuel costs.
Meanwhile, Crandall said full deregulation will not work in the aviation industry. Calling for some regulation, Crandall said he wants a government role in pricing. He said unfettered market forces have fostered distorted pricing systems in which carriers sell seats too cheaply.
Crandall suggested requiring airlines to price tickets based on the sum of fares for each leg flown, which would foster more nonstops that are more efficient and "turn conventional wisdom about hubs on its head," he said.
He also urged that the Railway Labor Act be amended to forbid strikes against airlines and require binding arbitration for labor disputes.
Crandall said the government's lack of a national transportation plan has led to a decline of airlines, railroads and highways. Crandall added he is "appalled" that no one in Washington has given any thought to developing high-speed rail both for city-to-airport transportation and as an alternative to air on routes of 300 miles or less.
He also said the air traffic control system needs to be fixed, but that "we seem to have lost our political will to resolve conflicts."
"Until we regain that will, our antiquated ATC system will continue to inhibit [the success of U.S. aviation]," Crandall said.