If I have learned anything as Chairman, it is that the aviation industry is extremely complex. As a general matter, my philosophy is that the more complicated the problems are in the private sector, the less the government should get involved. These hearings are designed to highlight some of those problems and explore possible solutions to them. More recently, we heard from various airline executives who explained how the larger established airlines compete with each other and with new entrants. Today, our focus is on the status of deregulation, and airline ticketing practices, including yield management strategies, and on the application of the anti-trust laws to the aviation industry.
Competition benefits the consumer by lowering ticket prices and improving service.
I am not interested in re-regulating the airline industry, and, in fact, will oppose any such efforts. However, I do want to ensure that competition is maximized and that the anti-trust laws we have on the books are being enforced, so that consumers may benefit from the maximum amount of competition possible. Dr. Kahn is known as the father of airline deregulation, and is probably one of the most knowledgeable individuals in the world on aviation economics. He will give us a sense of the state of competition in the industry, and what has happened since deregulation. I hope he will also comment on the effect the potential airline alliances will have on consumers, as well as the Department's recent guidelines on predatory pricing.