Thursday, December 1, 2011

Tough Regulation Is Tough On Business

The Federal Aviation Administration's $900,000 administrative penalty levied against American Airlines for delaying passengers on the tarmac doesn't seem to have increased timeliness, just bankruptcy filings.

In Europe and other parts of the world, delays result in compensation to passengers, not regulators unsuccessful in preventing delays.

Result? American Airlines' Chapter 11 proceeding will facilitate tougher bargaining with employees and their unions, airports and their support infrastructure, and general creditors like the FAA with its new claim for administrative penalties. Passengers are likely to see little change.

No comments: