price competition into the industry, and easier entry into the industry for new airline companies.
The Carter Administration entered office at about the same time that the GAO report was issued, and soon made clear its intention to continue the experimental approach to airline regulation. Super Saver type fares were soon approved for widespread use in the industry, and the CAB began to (1) actively encourage price discounting by airlines, and (2) give priority consideration on route applications to those carriers demonstrating fare reductions on existing routes.
Deregulation of the airline industry gained acceptance as a policy alternative, as the Carter Administration policies reached the marketplace. The CAB's criteria for route assignments began
a decisive shift toward the placing of a show cause burden of proof on existing route carriers to demonstrate that an increase in competition would (1) threaten their solvency, or (2) impair their ability to provide essential air transportation
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