FOR IMMEDIATE RELEASE
Dr. Alfred Kahn Calls for Continued Deregulation
Boston, MA (Sept. 22, 2008)- During the keynote address 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. ACI’s conference welcomed more than 2,000 delegates from 49 countries and 154 airports, as well as 369 companies in the airport industry.
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 Deregulation”, 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 increased air traffic has recently presented difficulties for airports, given the current challenges stemming from increased fuel prices and an 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.
Also during the Monday morning General Session, airport executives heard from John Quelch, Senior Associate Dean and Lincoln Filene Professor of Business Administration at Harvard Business School. Dr. Quelch offered the attendees a new definition for the industry. “We are not in the airport, aviation or transportation business,” said Dr. Quelch. “We are in the people business - serving up the experiences that go with flying people from Point A to Point B,” said Dr. Quelch. “Our product is also entertainment, shopping, dining and all the other ingredients that add fun to flying. If you agree with me, then surely the metrics by which we measure an airport’s performance need to focus on people by emphasizing customer satisfaction and other customer-based metrics."
Other speakers at the General Session included Greg Principato, President of ACI-North America (ACI-NA), Randall H. Walker, Director of Aviation of Clark County Department of Aviation, McCarran International Airport, and 2008 ACI-NA Chair; James C. Cherry, President and CEO of Aéroports de Montréal and chair of ACI World, Angela Gittens, Director General of ACI World, Thomas J. Kinton, Jr., CEO & Executive Director of Massachusetts Port Authority; and Bernard Cohen, Secretary of Transportation of Commonwealth of Massachusetts.
About ACI-NA:
The mission of Airports Council International - North America (ACI-NA) is to advocate policies and provide services that strengthen the ability of air carrier airports to serve their passengers, customers and communities. ACI-NA represents local, regional and state governing bodies that own and operate commercial airports in the United States and Canada. ACI-NA member airports enplane more than 95 percent of the domestic and virtually all the international airline passenger and cargo traffic in North America. Nearly 400 aviation-related businesses are also members of the association, which is the largest of the five worldwide regions of Airports Council International.
CONTACT:
Victoria Houghton, vhoughton@aci-na.org, (202) 861-8080
Eileen Denne, edenne@aci-na.org, (202) 293-4537