AIRLINE COMPETITION: Barriers to Entry Continue in Some Domestic Markets.

We appreciate the opportunity to testify on the air service problems that some communities have experienced since the deregulation of the industry in 1978. Airline deregulation has led to lower fares and better service for most air travelers largely because of increased competition spurred by the entry of new airlines into the industry and established airlines into new markets. As we reported in 1996 and 1997, however, some airports have not experienced such entry and thus have experienced higher fares andor less convenient service since deregulation. Our testimony today summarizes the findings from our prior work on these fare and service trends, factors contributing to the problems, and the initiatives by the Department of Transportation DOT and others to address these problems.