Airline Deregulation Act of 1978 - Case Study Example

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The case study "Airline Deregulation Act of 1978" points out that The Airline Deregulation Act is a federal law in the United States that was enacted on October 24, 1978. The rationale behind the law was to get rid of the control of the government on fares, routes, and entry of new airlines…
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Download file to see previous pages The paper shows satellite airports, trying to avoid the irrational industry absorption that would eventually lead to an increase in prices along with a reduction in services, and encouraging the entry of airlines into newer markets thereby strengthening the services of the small air carriers as well. Several restrictions on airline operations were removed as part of the Act. Restrictions on domestic routes and new services were eliminated completely with a complete end of the domestic fare regulation. These changes had been quite rapid in the process (Airline Deregulation Legislation Act 1978, n.d.). The present study has considered learning on the Airline Deregulation Act of 1978 discussion on the effects of regulation and deregulation and what is still being regulated in the industry.

The deregulation of the airline industry had begun in the year 1979. Before that, the Civil Aeronautics Board had control over both the routes that airlines took off as well as the prices of the ticket that were charged, where the major goal of the Board was to serve the interest of the public. As the deregulation initiated, airlines that were nationally owned and could be considered as robust, prepared, and competent by the Department of Transportation (DOT) were allowed to fly on any domestic route. The principal regulatory responsibility of the DOT altered from supporting an airline’s operations for the interest of the public to make decisions whether an airline was operating in harmony with the standards of safety and other processes of operations (Competition and Regulation in the Airline Industry, 2002, p.1).

From the time when the deregulation started in 1979, the airline industry in the U.S. has been obtained to have grown enormously. A growth of around 225 percent was experienced by the country over this period of time. On the other hand, Canada, where the airline industry was deregulated later and encountered lesser competition than the United States, experienced a lesser growth rate of 80 percent. Thus, it could be considered that deregulation, predominantly in amalgamation with rivalry. ...Download file to see next pagesRead More
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