Deregulation of Commercial Airline Fares and Routes

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Introduction

Deregulation of airlines refers to the process through which price and entry restrictions on airlines especially the ones affecting the carriers allowed to operate in specific routes are removed . In the US the term airline deregulation is in particular used to refer to the 1978 Act on airline deregulation . This was a new mode of regulation that was developed address the problems that were being experienced in the air transport sector such as the allocation of the few available slots at

the airports . But two decades after the airline deregulation , the issue was still leading in the public policy . The policy makers in the industry have been under pressure due to continued complaints from customers as a result of the delays and congestion being experienced at the airports . The customers also had a variety of other issues : the business fares had considerably increased , some of the smaller cities were no longer receiving the amounts and kinds of air services as the residents of major cities and that the small airlines that were coming up could not be able to effectively compete . A number of solutions to the problems have been proposed , such as the federal authorities should cease controlling the routes served and the fares charged by airlines (Costello , Para 2

Effects of airline deregulation

According to a study that was conducted in 1996 , it was found out that on average , the fare that was being paid by a passenger for every mile in...