A prominent investment banker with strong ties to the aerospace and airline industry is calling on Congress to increase regulation of the United States airline industry.
According to Hector J. Cuellar, president of RSM EquiCo Capital Markets, the global investment banking arm of RSM McGladrey:
"A strong domestic airline industry is an essential component of our nation's overall economic health, and the sector's current woes risk further damage to an already weak economy... Government action is long overdue. Congress must act promptly to prevent further industry deterioration and the corresponding deleterious effects on the nation."Among the actions Cuellar believes Congress should take are:
- Pricing Structure. Recognize the utility-like nature of the airline industry and create a commission to review airline pricing and, if necessary, establish a supervised floor on pricing.
- Labor Laws. Amend labor laws to enable disputes to be resolved in a much more timely manner.
- Bankruptcy Laws. Prevent failing airlines from using lower costs to undercut the fares of financially stable carriers, and set more stringent time limits under which airlines can operate under bankruptcy protection.
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