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Topic: Airline deregulation


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  Airline Deregulation Act - Wikipedia, the free encyclopedia
Airlines' dire predictions of a post-deregulation world were mitigated by the experience of thriving unregulated intrastate carriers such as PSA and Southwest Airlines and by the successful deregulation of air cargo in 1977.
Deregulation has in many cases led to predatory pricing and other anti-competitive behavior, and to airlines overextending themselves financially; several bankruptcies and takeovers of airlines in the years following deregulation may be attributable to this.
Another common anti-competitive practice of major airlines is to charge substantially less for a round trip on a given itinerary than for a one-way trip, or to charge substantially more for a given segment of a multi-segment itinerary than for the complete itinerary, which constitutes a form of tying.
en.wikipedia.org /wiki/Airline_Deregulation_Act   (1275 words)

  
 Airline Deregulation, by Alfred E. Kahn: The Concise Encyclopedia of Economics: Library of Economics and Liberty
The United States Airline Deregulation Act of 1978 was a dramatic event in the history of economic policy.
Deregulation also has given rise to a number of problems, including congestion and a limited reemergence of monopoly power and, with it, the exploitation of a minority of customers.
The airline industry is far more competitive than it was; the benefits of that competition have been widely distributed; and industry profits have been lower, on average, since deregulation.
www.econlib.org /library/Enc/AirlineDeregulation.html   (2605 words)

  
 Airline Deregulation Confronting the Paradoxes
Deregulation is also widely believed to have been responsible for the sharp decline in the number of carriers through merger, acquisition, and bankruptcy.
Airlines such as TWA and Continental, which piled on debt in the late 1980s, have also found those decisions to be costly and have in turn been forced into Chapter 11.
The airline industry, which was freed in the 1970s and 1980s from governmental intervention on rates and routes, increasingly in the 1990s must turn to government for international interventions and for infrastructure decisions on airports and air traffic control.
www.cato.org /pubs/regulation/regv15n3/reg15n3-bailey.html   (4382 words)

  
 Lessons of Airline Deregulation
The driving force behind deregulation was the perception that regulation by the CAB had resulted in reduced competition and higher fares.
The best argument against deregulation was that proper administration and/or reform of the existing law could cure the regulatory excesses of that period, the classic baby-but-not-the-bathwater formulation.
Indeed, the ability of airlines to discriminate by time of purchase, conditions of travel and, significantly, the degree of competition faced in each city-pair market, has been both the major impetus for lower average fares and the major source of most complaints about deregulation.
www.zsrlaw.com /publications/articles/fjclessons.htm   (1627 words)

  
 Encyclopedia: Airline Deregulation Act
Deregulation is the process by which governments remove selected regulations on business in order to (in theory) encourage the efficient operation of markets.
The Airline Deregulation Act, passed in 1978, gave US airlines almost total freedom to determine which markets to serve domestically and what fares to charge for that service.
A union (labor union in American English; trade union, sometimes trades union, in British English; either labour union or trade union in Canadian English) is a legal entity consisting of employees or workers having a common interest, such as all the assembly workers for one employer, or all the workers...
www.nationmaster.com /encyclopedia/Airline-Deregulation-Act   (2945 words)

  
 TAP: Web Feature: Air Fair?. by Robert Kuttner. April 22, 2002.   (Site not responding. Last check: 2007-10-22)
Deregulation was supposed to bring about more competition, but it has brought more consolidation.
Meanwhile, in the age of deregulation, the airlines have lost a small fortune.
Deregulation is the worst possible mix of ruinous competition on some routes and compensatory price gouging on others -- a crazy quilt of some travelers subsidizing others for no reason except the airlines' hit-or-miss market power.
www.prospect.org /webfeatures/2002/04/kuttner-r-04-22.html   (765 words)

  
 Online NewsHour: The Legacy of Deregulation - January 9, 2003
Alfred Kahn, the architect of airline deregulation, discusses the current state of the industry with Paul Solman.
For the airlines, higher fuel prices meant higher fares, stoking inflation, just as incomes due to the recession were going down.
But though there were costs to deregulation, they were far outweighed, he thinks, by the benefits, and that's all any economist can ask.
www.pbs.org /newshour/bb/transportation/jan-june03/airlines_1-9.html   (1710 words)

  
 Airline Deregulation: The Unfinished Revolution   (Site not responding. Last check: 2007-10-22)
In deregulating the airlines in 1978, Congress unleashed market forces on one segment of the air-travel system--but failed to free up the critical infrastructure on which the airlines depend, namely the airports and the air traffic control (ATC) system.
Airline managements were forced to please the regulators, not their customers, and that incentive weakened their ability to respond to consumer needs.
The airline industry is highly dynamic, changing not merely from year to year but from month to month in response to innovations in service and pricing (hub-and-spoke, point-to-point, no-frills/low-fare), the advent of new types of aircraft (e.g., regional jets), normal economic cycles of boom and recession, and many other factors.
www.rppi.org /ps255.html   (9397 words)

  
 Business Horizons: Who ambushed airline deregulation?
Project Think Tank, a group of senior airline executives and high ranking government officials (including one of the authors, Robert Thornton) from much of Western Europe and the United States met for eight sessions in Geneva between 1974 and 1978 to discuss a coordinated policy for international civil aviation.
The conferees suggested that the secondary airlines be given less direction from the government, so they could pursue their profitability with more innovation and less interference.
In spite of all this, we decided not to complain or change to another airline for future trips because we were frequent fliers with the airline we had used.
www.findarticles.com /p/articles/mi_m1038/is_n1_v40/ai_19369684   (1390 words)

  
 AlterNet: The High Price of Airline Deregulation
The most ardent proponents of airline deregulation argue that as much as half the price decrease since 1978, or about 20 percent overall, is a result of deregulation.
Airline passengers may have saved 10 percent, but hundreds of thousands of people have lost their jobs or their job security or their pensions.
Airline deregulation has had other highly significant impacts outside of the traditional scope of economics, particularly the massive increase in air travel.
www.alternet.org /story/25495   (2405 words)

  
 Daniel H. Rosenthal, Legal Turbulence: The Court's Misconstrual Of The Airline Deregulation Act's Preemption Clause And ...   (Site not responding. Last check: 2007-10-22)
During repeated telephone calls to track down their bags, the airline's representatives repeatedly tell the couple that the airline knows the location of the bag and that it is on its way.
Since the airlines have no obligation to inform passengers of the actual reason for any delay, see supra note 41 and associated text, the problem described above is made worse by the fact that passengers are dependent on the airline to inform them that the airline is acting outside the scope of its contractual authority.
In one case, for example, the defendant airline knowingly sprayed pesticide that made the plaintiff passenger sick, but the action was not considered an "accident." Therefore, neither the Warsaw Convention nor the Deregulation Act preempted the plaintiff's claim.
www.law.duke.edu /journals/dlj/articles/dlj51p1857.htm   (8080 words)

  
 Airline Deregulation: Free Market Success
Before deregulation, innovation and change by the airline industry was smothered.
Since then, deregulation airlines became cheaper to fly and safer, and at the same time the number of passenger miles has dramatically increased.
The problem with deregulating the airlines is that there are still problems with new airlines getting into the act and i...
www.suite101.com /article.cfm/politics_conservative/7326   (475 words)

  
 Airline Deregulation: Free Market Success
Airline fares are such that there can be as many as 15 different fares paid within a single flight.
On one hand some suggest that the case for airline deregulation was so compelling that few would would want to return on the past regulatory structure.
But the worst aspect of deregulation was that airlines began skimping on safety and maintenence to cut costs.
www.suite101.com /discussion.cfm/politics_conservative/5327/1-latest   (7015 words)

  
 What's Happened Under Airline Deregulation?   (Site not responding. Last check: 2007-10-22)
Over the past 20 years, consumers of airline services have been the big winners due to competition among the carriers, which has lowered airline fares, according to industry experts.
Adjusted for inflation, airline tickets are 37 percent cheaper today than they were before deregulation.
Airline industry defenders point out that air travel was too expensive for many Americans before deregulation.
www.ncpa.org /pd/regulat/regfeb98m.html   (142 words)

  
 Airline Deregulation - Should we allow foreign ownership of US airlines?
During the period of airline regulation they were of course extended, and since then these restrictions have been perpetuated primarily due to the political fact that US airlines are a very effective lobbying group, whereas international investors have virtually no lobbying clout in Washington.
Furthermore, the US airlines are generously remunerated in return for their military charters, indeed one recent study suggested it would be cheaper and better if the US government simply tendered for charters on the open market!
Any start-up airline, no matter who or where their owners are, carefully works out a business plan that has them concentrating on some 'easy' routes that they think they can make a profit on.
www.thetravelinsider.info /2003/0404.htm   (2145 words)

  
 Airline Deregulation
The top players in the airline industry would find ways to defend their oligarchic interests in ways that were radically disjoined from the free market ideology they paid lip-service to.
These frustrating delays, along with airline food and in-flight showings of "The Jetsons go to Las Vegas", are mostly responsible for periodic outbursts of "air rage" which are manifested by altercations with flight attendants or passengers defecating on their food trays.
Airline monopolies also circumvent free market pricing through their control of computerized reservation systems, which is to this industry as Bill Gates control of MS Windows is to his.
www.columbia.edu /~lnp3/mydocs/economics/airline_deregulation.htm   (4935 words)

  
 ILSR Columns: Airline deregulation wasn't cure-all
Advocates of deregulation point to the fact that the number of air passengers has soared since 1978; but it soared as fast in the years before deregulation.
They note that airline fares have dropped significantly since deregulation for most (but not all) passengers; but they dropped just as fast in the 27 years before deregulation.
Airline passengers have saved 10 percent, but hundreds of thousands of people have either lost their jobs or lost their job security or their pensions.
www.ilsr.org /columns/2005/082805.html   (874 words)

  
 Airline Deregulation
"Airline Deregulation Confronting the Paradoxes," by Elizabeth E. Bailey, Regulation, vol.
"Fare Is Fair in Airline Deregulation: Restrictions and the Pursuit of Allocative Efficiency," by Joseph P. Schwieterman, Regulation, vol.
"Dissipating the Airline Deregulation Dividend: The decline of competition at Hub Airports," by Severin Borenstein, Regulation, vol.
www.cato.org /research/regulatory-studies/airline.html   (186 words)

  
 Airline Deregulation Revisited by Radley Balko -- Capitalism Magazine   (Site not responding. Last check: 2007-10-22)
In the late 1970s, the major airlines began to invest heavily in what are called computer reservations systems (CRSs) in an effort to automate and manage the distribution of tickets by travel agents.
The aim: give no airline a significant advantage for having invested in the CRS system, and give consumers access to all available fares, not just those of those airlines who have good relationships with whatever CRS his travel agent happens to use.
One example of this new technology is Orbitz, a service started by the five major airlines, and which has at least a working partnership with most of the others.
www.capmag.com /article.asp?ID=2873   (1181 words)

  
 VDARE.com: 09/09/03 - Did Airline Deregulation Fail?
He pointed out that the case for deregulation was based on a comparison of fares between one unregulated intrastate airline serving the San Francisco-Los Angeles market—the largest air travel market in the U.S.—and the average fare of regulated carriers serving interstate travel.
Booth noted, the one airline skimming three California markets was all that remained out of 16 intrastate California carriers serving 32 markets.
Under the present deregulation regime, airline failure is a sign of success.
www.vdare.com /roberts/airlines.htm   (726 words)

  
 Amazon.com: Airline Deregulation and Laissez-Faire Mythology: Books: Stephen Paul Dempsey,Andrew R. Goetz   (Site not responding. Last check: 2007-10-22)
While much of the literature on airline deregulation praises it as a successful adventure in public policy, Professors Dempsey and Goetz conclude that deregulation has failed to achieve any of its principal objectives: better service, more competition, or lower prices.
Divided into four parts, their book assesses (1) the airlines, their corporate cultures, and the men who lead them, (2) free market economic theory and the political movement for deregulation, (3) the impact of deregulation on safety, service, concentration, and pricing, and (4) legislative solutions to the problems that have emerged.
He has published research focusing on the geographic distribution of air transportation services since deregulation.
www.amazon.com /exec/obidos/tg/detail/-/0899306934?v=glance   (599 words)

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