Airline Deregulation

Paper Summary:

Argues that deregulation created major economic, human resource and marketing disruptions in the industry. Examines background, pros and cons, examples, liabilities and funding ratios and consumer effects. Uses charts and tables.

From the Paper:

"CONSUMER EFFECTS OF AIRLINE DEREGULATION, AND EFFECTS ON COMPENSATION AND LABOR RELATIONS IN THE INDUSTRY

Introduction
Subsequent to the completion of the airline deregulation program almost 17 years, ago both the market structure and the ownership structure of the industry have been transformed. Deregulation brought about a rush of new airline companies into the industry. In 1978, the last full year of operation prior to the initiation of deregulation, there were 248 airline companies in the United States ( FAA Opens, 1985). By the end of the first full year of deregulation, there were 349 such companies.
By the end of the second full year of deregulation, however, some carriers many old line had failed or were on the verge of financial failure. By early 1983, the industry had ..."

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