Why Did Airline Deregulation Produce Today's Industry Structure? Should Our Lawmakers Have Predicted How the Industry Would Emerge?
Research rept. Aug 1992-Apr 1993
INDUSTRIAL COLL OF THE ARMED FORCES WASHINGTON DC
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The commercial airline industry of the United States has undergone tremendous changes since it was deregulated in 1978. Allowed to operate in a more open and competitive environment, airline management reacted quickly and sometimes ingeniously to maintain and expand their market share. The results over the past 15 years have been disastrous for all but a few airlines. Many of the airlines, initiatives and innovations produced results that were totally unforeseen by the government. This paper discusses how airline deregulation has produced todays industry structure and shows how our lawmakers failed to correctly predict results of their actions.
- Commercial and General Aviation
- Economics and Cost Analysis