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Airline Deregulation

Can designer uniforms, satellite TV, the disappearance of first-class, signature potato chips, and the promise of more legroom counter-balance America's air travelers' displeasure with congested airports, airline safety standards, and many flight's "delayed" tag seen on departure boards? No. However, low fare prices can, and have been the reason for much of the success America's airline industry has seen since 1978 when the government gave up determining the fares domestic airlines could charge and the routes they could serve. Today, boutique airlines such as JetBlue, Ted, Song, and Southwest continue to have early success thanks to The United States Airline Deregulation Act. Alfred E. Kahn, architect of the deregulation, cites it as being, "à a dramatic event in the history of economic policy. It was the first thorough dismantling of a comprehensive system of government control since the Supreme Court declared the National Recovery Act unconstitutional in 1935"(1). This policy has enabled the average American, who before 1978 was not only restricted by gouging ticket prices, but possibly also affected by unavailable markets, allowing him now to get where he wants, when he wants, and most recently, for how much he wants to spend. Of course carte blanche does not come without a price. More than what basic consumers have to endure through the success of the deregulation, the economy bares a greater weight by what George Williams likes to describe as, "à a limited reemergence of monopoly power"(91). Because deregulation has allowed more routes, which means more choices for consumers, concentration on the national level has shown to be not as important as on individual routes. Mergers, however, have sharply increased price discrimination, and have made possible a monopolistic phenomenon. Mr. Williams goes on to say that it would be a mistake to regard these developments as failures of the policy, but rather an unwanted proof ...

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Airline Deregulation. (1969, December 31). In LotsofEssays.com. Retrieved 17:39, April 26, 2024, from https://www.lotsofessays.com/viewpaper/1703643.html