Cookie Monster

Passengers, Packages: The Paradox of Air Transport

Interesting, but off the mark IMHO. The real difference between passengers & their bags and boxes going air freight is the attention people demand for which they are unwilling to pay. People want to be pampered, they want their call drinks, they want wonderful food, they want executive waiting areas, they want wheelchair accessability, they want their 10-year olds to be able to travel alone, they want internet access throughout their travels, they want boarding music and movies in-flight. Boxes don't require any of this. In addition, while there are many air freight companies, there are really two powerhouses: FedEx and UPS. Congress and the public seem comfortable with this, yet anytime there seems to be a real chance of consolidating the airline industry down to 3 or four powerhouse carriers who might have a chance to become stable and profitable, there is a hue and cry from Washington about loss of service to remote areas and rising costs. As long as the government won't let carriers really compete (and some lose!) the entire industry will remain stuck. As long as carriers attempt to sell transportation as some sort of "Air Spa" they'll have to produce the personal treatment they have lead people to expect.

Passengers can't expect to pay air freight rates for their own transportation and then demand hot towels, lay-flat seats and hot fudge sundaes. Companies can't advertise the glamour and then compete on minimum cost. The Government can't claim that this is a competitive market when they won't get their hands off the competition.

Other than the above, it's really simple.