Airline Deregulation Act of 1978

Airline Deregulation Act of 1978

The authors’ main argument is that air line deregulation act of 1978 has worked well in airline transport industry even if it is being criticized by few individual hat is has led to deterioration of quality services which used to exist before deregulation. He argues that problems of congestion and limited reemergence of monopoly together with the exploitation of minority customers aren’t failures of deregulation but rather a measure of its success. The problem is on the government which has not taken its responsibility to support the increasing demand for airlines and airports.           He claims that since deregulation fares have tremendously reduced to about 10-18% lower than during regulation. He also says that airline productivity has grown tremendously due to removal of the previous detailed restrictions on air line prices and where they could fly. There is efficient hub-and spoke operations under deregulation which rarely existed during regulation hence proving the inefficiency of centralized government planning and free competitive markets superiority.

The quality of service improved with deregulation especially in rural areas but congestion, delays and discomfort has been the major problem travelers in the era of deregulation has experienced. The author claims t.............