Dauphinot, Lee Ann

Southern Methodist University

Journal of Air Law and CommerceVolume 44 | Issue 3 Article 71978An Introduction to Airline Economics. By WilliamE. O'Connor.Lee Ann DauphinotFollow this and additional works at: https://scholar.smu.edu/jalcThis Book Review is brought to you for free and open access by the Law Journals at SMU Scholar. It has been accepted for inclusion in Journal of AirLaw and Commerce by an authorized administrator of SMU Scholar. For more information, please visit http://digitalrepository.smu.edu.Recommended CitationLee Ann Dauphinot, An Introduction to Airline Economics. By William E. O'Connor., 44 J. Air L. & Com. 683 (1978)https://scholar.smu.edu/jalc/vol44/iss3/7Book ReviewsAN INTRODUCTION TO AIRLINE ECONOMICS. By William E. O'Con-nor. New York: Praeger, 1978, 254 pp.Drawing on eighteen years of experience at the Civil AeronauticsBoard, O'Connor has produced a text designed for use by non-eco-nomics majors in undergraduate level courses, presumably as typi-fied by the author's course at Embry-Riddle Aeronautical Univer-sity. Although the book was written as a text, its easy reading styleshould make it a useful background and reference source (at its de-signed elementary level of coverage) for the lay reader interestedin air transportation.As the author notes in the preface, air transportation is a "livelyand changing" field; ironically, his work has fallen victim to oneof the most significant changes in the sector at the very moment ofits publication. Recent passage by Congress of airline regulatory re-form legislation has rendered substantial portions of the text, in-cluding what would be otherwise useful descriptive accounts of themores and modus operandi of the CAB, obsolete as a current re-search source. (By page count, over half the volume is so affected-including a lengthy appendix of seventy-four pages, which re-produces in toto the Federal Aviation Act of 1958.)The remainder of the book consists of brief but useful descrip-tions of basic airline economics--demand, cost, and ratemakingconsiderations-and a useful description of the productive processitself. The book's longest chapter, concerning air cargo, is a cre-ditable treatment of that subject. The topic of international servic-es, on the other hand, is dated. The author notes that the reformproposals (now enacted) do not directly affect international serv-ices; yet who can deny that the deregulation/competitive fever isUnfortunately, this book, while making passing references to theeconomic debate concerning "deregulation," does not attempt todiscuss at any length the underlying theories and evidence sur-rounding the concept of deregulation (i.e., there is no reference atall to the dichotomy between intrastate and CAB regulated fares).JOURNAL OF AIR LAW AND COMMERCEThis is, perhaps, just as well: in O'Connor's view the provision ofairline services has certain economic characteristics, such as ease ofentry (absent restrictions) and the production of undifferentiatedproducts, which he characterizes as "leading toward and makingnecessary a high degree of governmental regulation by the CAB."If such economic characteristics of an industry mandate a high de-gree of regulation, may heaven help us!George W. Douglas*THE LAW AND THE TRAVEL INDUSTRY. By Alexander Anolik.Corte Madera, California: Alchemy Books. 1977. pp. 283.Alexander Anolik, a San Francisco attorney and lecturer on thesubject of the law and the travel industry, attempts in this book toanswer the fundamental questions of travel law and practice forboth attorneys and travel agency personnel. His effort is largelysuccessful. The book is intended to be neither an exhaustive studynor an all-inclusive treatment of the subject. Rather, it provides aquick, easily understood introduction to the problems and peculiari-ties of the travel industry.The book consists of twenty chapters, covering such varied top-ics as: airline overbooking and oversales, filing a CAB complaint,plotting a course to pay less in taxes, preparing for an IATA/ATCinspection and hearing, the purchase and sale of an agency, andlabor relations. Treatment of these subjects is, necessarily, generaland elementary. The book is designed to provide a starting pointfor attorneys faced with problems relating to the travel industry andto serve as a useful reference guide for those involved in the travelbusiness.Each chapter follows the same general form and can be dividedinto roughly three parts. First is a statement of the law or defini-tions. Next is the "how to" section in which the author sets out thesequence of steps to be followed or elements which must be proved.The final section is generally devoted to caveats.* B.S., M.A., Ph.D., Yale. Co-author, EcONOMIc REGULATION OF DoMESTIcAIR TRANSPORT.BOOK REVIEWSIn the chapter on airline overbooking and oversales, the authorbegins with a discussion of the effect of reservation confirmation bya carrier, the problems created by no-shows, and reaction to theseproblems by both carriers and government. This discussion is fol-lowed by an explanation of the three conditions which a passengermust satisfy in order to recover denied boarding compensation. Fin-ally, the author warns of the circumstances under which deniedboarding compensation is not available despite the passenger's hav-ing satisfied all three requisite conditions. This final section includesreference to two CAB Orders and a discussion of the facts andrulings of Nader, et al. v. Allegheny Airlines, Inc., 512 F.2d 527(Cir. 1975). The text of the entire chapter covers less than fourteenpages, and its brevity is typical of the author's approach to all sub-jects covered in the book.Most of the other topics covered, including labor relations, taxplanning, and agency dissolution are also cursorily treated. Thelongest chapter is twenty-eight pages and, predictably, deals withpreparing for government inspection and hearings. The smallamount of space dedicated to such broad topics appears to openthe author to charges of superficiality and excessive generality. Ifthis book were the typical legal treatise, the charges would be justi-fied. But Mr. Anolik's apparent purpose is to pull together in asingle volume a collection of important considerations which can,if necessary, be thoroughly explored elsewhere.The book is also useful for the layman as a quick reference toprevent hasty, ill-advised actions. Mr. Anolik does, however, tendto over-simplify some areas. For example, the tax chapter suggeststhat such planning is merely a simple matter of deciding whetheror not to incorporate. Tax planning is notoriously complicated, andthis chapter fails to explain or recognize the technicalities involved.The author's direct and often witty style makes this book a par-ticularly welcome addition to legal literature which is often so dullas to be almost unreadable.' Mr. Anolik's approach is also extreme-1 For example, the following caveat appears:Reminder: the agent cannot threaten criminal action in an attemptto seek his own remuneration; e.g., "I've caught you discounting,now either let me have the passengers or I'll turn you in." This"subtlety" is called extortion, and is usually a felony under bothstate and federal statutes.A. ANOLIK, THE LAW AND THE TRAVEL INDUSTRY 42 (1977).1979]JOURNAL OF AIR LAW AND COMMERCEly practical, and he does what law students wish authors of hornbooks would do. He lists clearly and simply each step required fora particular action or each element which must be proved for re-covery in certain litigation. Moreover, these steps are sufficientlyspecific, with a few exceptions, to be easily understood by both thelayman and the attorney with limited experience.'The three appendices set out the Atlantic (East) Coast ConsentDecree, the Pacific (West) Coast Consent Decree, and CAB Poli-cies Relating to Enforcement. These documents deal primarily withair passenger transportation fares and unfair and deceptive prac-tices of ticket agents and air carriers. The appendices are followedby a thirty-five page glossary which includes such basic terms as"Administrative Law Judge" and "Damage," as well as such legaland technical terms as "In Propria Persona" and "MiscellaneousCharge Order." Documentation is scanty and the materials are in-dexed poorly.Used properly, this book is valuable to the person operating atravel business and to the attorney who does not have a great dealof experience handling travel problems. It is a handy reference foradvising clients and for initiating in-depth study. It is not, however,intended to be relied upon exclusively in preparing for any majorchange of position or for dealing with the various governmentagencies. The author would do well to point out in a preface thatthis book is not a "do-it-yourself" manual for the layman who istired of dealing with lawyers. The book provides a useful startingpoint for the attorney preparing for litigation, and as such, it shouldsave many hours of research on basic points.Lee Ann Dauphinot*'In laying out the steps to be followed in collecting a debt, he includes suchadvice as "[a]ll demand letters should be sent in a closed envelope." Id. at 198.He then follows the delineation of these steps with a discussion of possible tortliabilities resulting from collection efforts. In the chapter filed "Credit Extendedby Travel Agents" the author suggests that having the client of a travel agencysign a form authorizing the agent to make charges on the client's credit card isabsolutely necessary for the protection of both client and agent. The author thenprovides two sample authorization agreements.* B.A., Texas Christian University; M.A., Stanford Univesity; A.B.D., TexasChristian University; J.D., Southern Methodist University.

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