As a business adviser for over 30 years, I tend to lean on the side of competitive free market capitalism. However, a recent trip to Europe has raised some doubts.
Let’s begin with the airlines.
The free market dictates that competition is driven by the consumer. Where, if not treated well, they can take their money elsewhere. But what if ‘elsewhere’ isn’t really an option? The airlines understand this so when they collectively decide to cram as many people as possible into their flying aluminum tubes, then really – “what are the options?”
Some are fortunate enough to pay extra for an upgrade where more space between seats makes the flight bearable. In my travels I’ve taken this option. Therefore, adding $1000 to the round-trip to Europe used to achieve this. However, on my recent booking, that option has been replaced with a much more expensive upgrade which includes things that the average passenger is not interested in.
And to my horror, several years ago on a return flight from Zurich to Philadelphia the airline’s computer system failed to give me the upgraded seat which I had paid for. And because the flight was full, I had no choice but to join the others in the cattle car.
Eight hours of flight misery shared with others (who may not be able to pay extra for not only comfort – but more importantly – SAFETY) seems unacceptable.
Watching various passengers who braved climbing over others to simply get out of their seats so they could use the restroom made me ask, “My God, what would happen in an emergency?”
When I asked a friend of mine (who has been a pilot with a major carrier for over thirty-five years) how the airlines get away with this, his response was “Because they don’t care, and when brought before Congress, they lie.”
I will leave that statement for others to decide on, but when it comes to safety, I would really like to see some regulation.
Adding another layer to this issue is the impact of ongoing geopolitical conflict. Airspace restrictions, rising fuel costs, and rerouted flight paths due to instability in regions such as Eastern Europe and the Middle East have increased both travel time and operational costs for airlines. These pressures inevitably get passed down to consumers, often in the form of higher ticket prices and baggage prices.
The trains throughout the EU have always been worth admiring. However, on this recent trip passengers were complaining about them being behind schedule, disorganized and basically a mess. “I thought this was government run, I asked, “what happened?”
They went on to explain the decision to “privatize” more of the train system so they might run even better and even save some money. I plan to investigate this further but if it is true then perhaps this is another example when the free market is failing. Does this really mean that “government did a better job?”
Free market capitalism works well when it is carried out in a truly fair and safe manner. Capitalism is a good thing and has been a backbone of our economy. But if is not responsible, then perhaps we have a problem.