LCC's Need a Cap For Industry Safety
There is a sad growing trend in the industry which is virtually eliminating the middle class passenger. Most airlines are developing larger Business Class sections like that of Korean Air with A380 top deck all business seats. On the contrary you have the booming success of low cost carriers that in my opinion will be is forcing the industry into a more unsafe environment. I would like to take this argument in two directions with one possible solution.
With the economic downturn throughout the world and emerging industry powers such as India, China, Indonesia, we are seeing ticket prices drop off to unthinkable levels. The main concern in Asia right now is where are they going to get all their much needed pilots and what is the safety level going to be set at. You have most countries pushing for only national hired pilots that run through cadet programs and some trying to fast track pilots through GA into A320/737. The end result is the ability for these companies to pay substantially lower wages and begin to operate international destinations. With these companies comes many safety concerns: the quality of the training (and ultimately the pilot) the over work of pilots, the quality of maintenance. These companies are able to run the industry standard to an all time low, and although not very detrimental in their own countries the lasting effect will be terrible. A perfect example of this is the success of Air Asia. Air Asia has been around less than ten years and with rapid expansion now covers nearly all of south east asia and soon to be japan. This company is hiring local pilots with local wages and is able to charge substantially low prices. Air Asia X now offers flights from Malaysia to Paris for under $400 (direct) 1 way, compared to that of Gulf Air with one stop and just under $600 before tax. Australia right now is a prime example of the divide in the industry with Qantas looking to expand their LCC JetStar and begin operations with Qantas as a high class executive airliner appealing to the business suits and people of more wealth. The pressures on international companies that are paying pilots proper wages, not working them to the bone, and abiding by strict safety regulations, are immense and very worrisome.
The argument can be had that if you gave 100 people a choice between two tickets prices and one was cheaper than the other more then 80% would be likely to choose the cheaper one. This is not a scientific fact but most of you reading this could probably agree that when you log onto expedia, fare compare etc your first instinct is to click the lowest fare. We as a people, even with wealth will more often then not opt for the cheapest flight. There are others who regardless of price will be selective over airlines that like, especially for long hauls, and will opt for the slightly more expensive flight or business class seat. Those airlines with middle class prices are in my opinion soon to become obsolete. Why would someone pay $1200 1 way on airline A when they could get the same flight for $800.
What I propose is far beyond the capabilities of any industry or organization, ICAO is the only one that comes to mind. There needs to be a restriction put on the ability of airlines to offer ridiculously low ticket sales. To have a promotion of 1$ or something along those lines usually includes hidden costs and is not the main focus here. Its companies day in day out offering round trip tickets for $80 from Kuala Lampur - Ho Chi Min or $45 Jakarta - Denpassar that are putting the pressures on International companies. What needs to be imposed is a law regulating the value of a ticket. It is understandable that countries like those in South East Asia are able to offer cheaper tickets because of their respective economies, but their needs to be a limit. I propose that the limit be based on the GDP of the country and be the resultant of a % of that. With this taken into account we will see an industry wide change that will push the industry back in the right direction. People will never not fly, and most people who do fly can afford a more expensive ticket. With this limited ticket price we will see companies take very minimal loss if they are still cheapest in the area but the funding going into the company will provide the ability to properly employ pilots and maintain safety standards. It will level out the playing field and provide major international carriers with very respectable standards to maintain a fighting chance. There needs to be something done before these airlines bring down the wages, safety standards, overall job satisfaction, and enjoyment that is flying.