Verified Document

Deregulation Act Of 1978 Before Term Paper

They have, on average, a thirty-five to forty percent increase in the number of scheduled departures and hub-and-spoke operations have made an increased number of destinations available to them. Airlines have cut frills during our current economic downturn, but the success of no-frills, low-cost airlines such as Southwest Airlines which do not offer many traditional amenities indicates that a substantial proportion of passengers are more swayed by price than comfort (Airline Deregulaton Act) .By far the most important aspect of customer service, safety, has increased under deregulation. Accident rates during the twelve-year period from 1979 to 1990 were twenty to forty-five percent below their average levels in the six or twelve years before deregulation (Kahn, Airline deregulation). Moreover, by displacing a certain amount of automobile travel, the low airfares made possible by deregulation have saved many more lives than the total number lost annually in air crashes. Surprisingly, consumers enjoy lower prices and greater access to services with fewer carriers. Deregulation did lead to some new low-fare carriers such as the highly successful Southwest Airlines and JetBlue Airways, but as of 2002, give major airlines controlled seventy-three percent of the market (Airlines, 2002). This is due to the failure of older, high cost airlines that could not change from inefficient, high cost models to efficient, low cost models (Airline Deregulation Act). Exposure to competition led to heavy losses and conflicts with labor unions at a number of carriers. Between 1978 and mid-2001 nine major carriers, Eastern, Midway, Braniff, Pan Am, Continental, America West Airlines, and TWA) and over 100 smaller airlines had gone bankrupt or been liquidated. Mergers and acquisitions among the survivors have created a small club of "mega-carriers" and oligopolistic conditions in many markets. But, this condition is more likely to be attributable to pre-deregulation restrictions that linger to this day (Airline deregulation: Barriers to entry continue to limit competition in several key domestic markets, 1996). The Federal government limits takeoff and landing slots at major airports such as Chicago, New York and Washington and the established carriers hold nearly all of the slots. Further, the established airlines benefit from long-term, exclusive-use gate leases and are not subject to perimiter rules at New York's LaGuardia and Washington's...

Parts of this document are hidden

View Full Document
svg-one

All These barriers impede the entry of newer airlines into key markets in the East and upper Midwest regions of the U.S.
In conclusion, airline deregulation has worked and consumers are better off. Consumers pay lower prices and have greater access to services thanks to more efficient capacity planning. Extending the ability to fly to the masses has expected implications for service. Even so, the problems are not even close to approaching the breakdown in safety and service claimed by deregulation opponents. Dominance by a limited number of suppliers is an issue and limits consumer choice. But, this issue more likely reflects continued government control over airports rather than the deregulation of airlines themselves.

Bibliography

Airline deregulation: Barriers to entry continue to limit competition in several key domestic markets. (1996, October). GAO RCED-97-4. Retrieved May 15, 2005 from Web site: http://www.gao.gov/archive/1997/rc97004.pdf

Airline Deregulation Act. Lockergnome Encyclopedia. Retrieved May 15, 2005 from Web site: http://encyclopedia.lockergnome.com/s/b/Airline_Deregulation_Act

Airline Deregulation Act of 1978. Department of Transportation. Retrieved May 15, 2005 from Web site: http://ostpxweb.dot.gov/aviation/airlinederegact.htm

Airlines (2002, July 2002). Consumer Reports. Retrieved May 15, 2005 from Web site: http://www.consumerreports.org/main/content/display_report.jsp?FOLDER%3C%3Efolder_id=348005& ASSORTMENT%3C%3East_id=333153

Consumers benefit from Airline Deregulation. National Center for Policy Analysis. Retrieved May 15, 2005 from Web site: http://www.ncpa.org/pd/regulat/rege.html

Deregulation and its consequences. U.S. Centennial of Flight Commission. Retrieved May 15, 2005 from Web site: http://www.centennialofflight.gov/essay/Commercial_Aviation/Dereg/Tran8.htm

Kahn, A.E. Airline Deregulation. The Concise Encyclopedia of Economics. Retrieved May 15, 2005 from Web site: http://www.econlib.org/library/Enc/AirlineDeregulation.html

Meyer, J.R. And Menzies, T.R., (1999, Winter). Airline deregulation: Time to complete the job. Issues in Science and Technology. Retrieved May 15, 2005 from Web site: http://www.issues.org/issues/16.2/p_meyer.htm

Sources used in this document:
Bibliography

Airline deregulation: Barriers to entry continue to limit competition in several key domestic markets. (1996, October). GAO RCED-97-4. Retrieved May 15, 2005 from Web site: http://www.gao.gov/archive/1997/rc97004.pdf

Airline Deregulation Act. Lockergnome Encyclopedia. Retrieved May 15, 2005 from Web site: http://encyclopedia.lockergnome.com/s/b/Airline_Deregulation_Act

Airline Deregulation Act of 1978. Department of Transportation. Retrieved May 15, 2005 from Web site: http://ostpxweb.dot.gov/aviation/airlinederegact.htm

Airlines (2002, July 2002). Consumer Reports. Retrieved May 15, 2005 from Web site: http://www.consumerreports.org/main/content/display_report.jsp?FOLDER%3C%3Efolder_id=348005&; ASSORTMENT%3C%3East_id=333153
Consumers benefit from Airline Deregulation. National Center for Policy Analysis. Retrieved May 15, 2005 from Web site: http://www.ncpa.org/pd/regulat/rege.html
Deregulation and its consequences. U.S. Centennial of Flight Commission. Retrieved May 15, 2005 from Web site: http://www.centennialofflight.gov/essay/Commercial_Aviation/Dereg/Tran8.htm
Kahn, A.E. Airline Deregulation. The Concise Encyclopedia of Economics. Retrieved May 15, 2005 from Web site: http://www.econlib.org/library/Enc/AirlineDeregulation.html
Meyer, J.R. And Menzies, T.R., (1999, Winter). Airline deregulation: Time to complete the job. Issues in Science and Technology. Retrieved May 15, 2005 from Web site: http://www.issues.org/issues/16.2/p_meyer.htm
Cite this Document:
Copy Bibliography Citation

Related Documents

Deregulation and Marketing Strategy
Words: 548 Length: 2 Document Type: Essay

Marketing Strategies Changed Since Deregulation The objective of this study is to describe how marketing strategies have changed since deregulation. It is reported that over the past 25-year that the transportation system in the United States has undergone dramatic changes in both "size and form as it carried ever-increasing numbers of passengers and volumes of freight, both domestically and internationally." ( ) The demand for transportation services has been due to

Deregulation Under the Trump Administration and Its Impact on the...
Words: 2006 Length: 7 Document Type: Essay

Deregulation under the Trump Administration and Its Impact on the Non-Profit Sector Introduction President Trump touted deregulation as one of the issues he would push for during his campaign leading up to the 2016 election. Once placed in the White House, he held true to his push for deregulation and that policy has had some impact on the non-profit sector in the US. This paper will show how that impact has benefited

Banking Deregulation
Words: 769 Length: 2 Document Type: Research Paper

Deregulation The Glass-Steagall Act of 1933 was the first major attempt at regulating the financial industry. The Act was passed by President Roosevelt with the objective of restoring public confidence in the banking system. Glass-Steagall sought to, among other things "prevent the undue diversion of funds into speculative operations," in response to the market crashes that had sparked the Great Depression (Maues, 2013). The reason for this was simple -- speculation

Impacts on Commercial Airline Industry As Result of Deregulation
Words: 1227 Length: 4 Document Type: Research Paper

Airline Deregulation Impact on Commercial Airline Industry as a Result of Deregulation The airline industry in the United States began functioning almost as soon as the Wright brothers made their first flight at the Killdevil Hills in North Carolina. In 1903, mail began to be carried by airplanes over short routes, so the United States government created an agency to help regulate how this was accomplished to make it safe for carriers.

Role of Government Intervention: Regulation and Deregulation
Words: 1090 Length: 3 Document Type: Essay

Regulation and Deregulation Prior to the 19th century, most people would have voiced their support for the "concept of laissez-faire, a doctrine opposing government interference in the economy, except in" the maintenance of law and order (U.S. Department of State, 2014). The turn of the 19th century, however, saw attitudes begin to change, and labor movements as well as small entrepreneurs asking the government to intervene, following the apparent failure of

Impact of Deregulation in the European Airline Market
Words: 3530 Length: 10 Document Type: Term Paper

Deregulation in the European Airline Industry The European airline market: Transport is one of the key sectors in Europe with commercial, economic and cultural implications for the European Union citizens. It accounts for over 10% of Europe's GDP and provides jobs to nearly 10 million people. In the last two decades, air transport has shown the maximum rise in passenger volumes, with an average annual growth rate of 7.4%, in terms

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now