The deregulation of the airline industry
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The deregulation of the airline industry in 1978 came about after decades of government imposed regulation that had been part of the airline industry since its inception. The deregulatory effort was part of a larger concern with government regulation in general and with controversies about perceived negative effects on competition in the airline industry of government regulation, which was seen as a growing thicket of regulations and controls that stifled competitive impulses and regulated nearly every aspect of the industry and its operations. Some saw this as a form of government micromanaging that was taking a toll, and deregulation was seen as a way of giving the industry over to those who had the highest stake in seeing it run properly, efficiently, and competitively--the airlines themselves. However, there were also fears that the competition that would arise would be entirely among the large national and international airlines, to the detriment of the smaller commuter airlines and routes. The thesis offered is that deregulation has had a negative effect on commuter airlines. An examination of the deregulated environment and history since deregulation will show whether this is the case or not. Airline industry regulation and deregulation is raised as an issue to address economic questions, safety concerns, and the competitive environment. The airline industry in the United States was effectively deregulated in 1978, and there have been nu
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h local service carriers which used jets with 90 or more seats. At the most, the commuters had two pilots in the cockpits, and at times there would be only one. Local service carriers had three. Labor relations for the commuter airlines were more flexible and informal--pilots would often help with unloading baggage or taking tickets, for instance, and in general commuter airline employees were willing to perform a wide variety of jobs. One result of this combination of smaller, propeller-driven aircraft and more flexible work rules was that the costs for commuter airlines were often as much as one-third less than was true for serving the same markets with jet aircraft. Costs were so low that these airlines could often entertain the possibility of profitably serving markets that local service carriers totally ignored, and indeed it was in such markets that many of the earliest commuters had started (Meyer and Oster, Intercity Passenger Travel 42).
Commuters achieved their lower costs to a degree by sacrificing some quality and comfort, but this sacrifice was not uniform. Because the commuters operated smaller aircraft, for instance, they could afford and usually offered more frequent flights in small markets than the local
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Some common words found in the essay are:
Passenger Travel, Meyer Oster, Graham Kaplan, Morrison Winston, HUB-AND-SPOKE STRUCTURE, Airline Entrepreneurs, CAB Jordan, DEREGULATION CAB, , Minneapolis-St Paul, commuter airlines, local service, meyer oster, service carriers, local service carriers, airline industry, commuter carriers, deregulation airline, intercity passenger travel, passenger travel, intercity passenger, service communities, meyer oster note, local service airlines, bailey graham kaplan,
Approximate Word count = 4387
Approximate Pages = 18 (250 words per page)
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