Question

In: Economics

July 2020 will be the month with fewer restrictions on the airline industry. Seems like the...

July 2020 will be the month with fewer restrictions on the airline industry. Seems like the airline industry has gained their ground back from the government and trying to fill for the cumulated losses they faced during the pandemic. We will see more number of international flights, either essential or nonessential,  arriving at the airports and potentially become a threat. What would be your stand in this balance of power between the federal government and the airline industries thriving for profit? Bring three major grounds for your reasoning considering the following factors: airlines are not necessarily private corporations, the federal government is responsible for the health of the citizens and residents, the federal government is responsible to provide fair competition ground for the corporations to compete, and there is no clear distinction between essential and non-essential travel yet

Solutions

Expert Solution

It is very true that the airlines are adding the number of flights slowly but it should be remembered that the pandemic is not over yet. With the number of cases increasing more than ever, the responsibility of the health of the citizens lies with the federal government. Since not all airlines are privately owned, there might be a possibility that the privately owned airlines do not implement complete safety measures because it would increase their costs of operating and reduce profits. The regulations imposed should be on all the companies so that they is fair ground for competition.

Airlines will not consider the social cost with operating if the government does not impose strict restrictions. The social cost here would be the risk of further spread of virus. This is why there is a clear need for the government to impose laws such that the airlines do not solely focus on recovering lost profits. Instead the regulations should ensure that the airlines spend on protective gear and other safety measures.


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