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Deregulation Of The Airline Industry
Part I of Essay
The airline industry has been subject of intense price competition since
it was deregulated, and the result has been a number of new carriers which
specialize in regional service and no-frills operations. These carriers
typically purchase older aircraft and often operate .... Part II of Essay
.... such as Southwest, which offered short trips between
airports not served by the nationals.
Deregulation of the airline industry brought about in 1978 introduced a
situation in which the national and regional carriers were suddenly able to
compete in an environment that resembled a free market. Rate schedules were
lifted, price fixing was eliminated and route management was removed. The main
factors that affected whether an airline could serve a particular city was
whether or not that city had enough gates for the new carrier, and wheth ....
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Words: 1619 - Pages: 6
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