Dr. Alfred Kahn Calls for Continued Deregulation

Listen to the audio recording of his speech (mp3 file)

Before more than 2,000 delegates from 154 airports and 369 companies in 49 countries at the 2008 Airports Council International’s (ACI) World/North America Conference and Exhibition on September 22 in Boston, Dr. Alfred E. Kahn, Robert Julius Thorne Professor Emeritus of Political Economy, Cornell University, reiterated his stance against aviation regulation.

Citing his experiences as chairman of the Civil Aeronautics Board, where he led the movement to deregulate U.S. airlines in 1978 and earned the title of the “Father of Regulation”, Dr. Kahn provided a brief overview of the years he was in the aviation industry. “The industry in the last 30 years gave the public something it had not received before: high quality, space, and low cost,” remembered Dr. Kahn. “It catered to a variety of demands and abilities today so that we had an enormous spread of fares. It offered the people upgrades such as business class and frequent flyer miles.”

Dr. Kahn then addressed how the increased traffic has recently presented difficulties for airports, given the current challenges stemming from increased fuel prices and economic downturn. With recent calls for government involvement, Dr. Kahn issued a warning against regulation. “My business is not in prediction, but it seems that $150 per barrel of oil will not be absorbable by a government plan. Airports and air traffic control systems need to be creative and innovative. If you depend on Congress, you are going to wait forever. It has got to be privatized and needs to simply follow the market and economic principles.”