An Analysis of the Intrastate Air Carrier Regulatory Forum. Volume I. Summary Report.
SIMAT HELLIESEN AND EICHNER INC NEW YORK
Pagination or Media Count:
Although the regulatory environments in Texas and California differ substantially, each has resulted in the establishment of carriers which are specialized in their desire and ability to serve medium- and high-density short-haul markets. Further, each has allowed these carriers to pursue a marketing and operational philosophy which has enabled them to achieve improved productivity and, as a result, charge lower fares. CAB regulation, on the other hand, has produced both tight control of entry and tight rate regulation, and has required equal fares for markets of the same distance. Consequently, there has been no development of specialized interstate carriers serving short-haul routes of density comparable to those served by the intrastate carriers. Application of a two-tier pricing system, along with improved frequency, would be expected to double the traffic volume in these markets, generating more than 18 million additional air passengers each year.
- Economics and Cost Analysis
- Sociology and Law