[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"detail-sidebar-cat-0-en-105":3,"doc-seo-324377-105":59,"doc-detail-324377-en":130},{"code":4,"msg":5,"data":6},0,"success",[7,13,18,23,28,33,38,43,48,51,55],{"id":8,"doc_module":4,"doc_module_name":9,"category_name":10,"show_sort_weight":11,"slug":12},1,"Document","Story & Novel",90,"story-novel",{"id":14,"doc_module":4,"doc_module_name":9,"category_name":15,"show_sort_weight":16,"slug":17},2,"Literature",80,"literature",{"id":19,"doc_module":4,"doc_module_name":9,"category_name":20,"show_sort_weight":21,"slug":22},4,"Exam",70,"exam",{"id":24,"doc_module":4,"doc_module_name":9,"category_name":25,"show_sort_weight":26,"slug":27},5,"Comic",60,"comic",{"id":29,"doc_module":4,"doc_module_name":9,"category_name":30,"show_sort_weight":31,"slug":32},6,"Technology",50,"technology",{"id":34,"doc_module":4,"doc_module_name":9,"category_name":35,"show_sort_weight":36,"slug":37},7,"Healthcare",40,"healthcare",{"id":39,"doc_module":4,"doc_module_name":9,"category_name":40,"show_sort_weight":41,"slug":42},8,"Research & Report",30,"research-report",{"id":44,"doc_module":4,"doc_module_name":9,"category_name":45,"show_sort_weight":46,"slug":47},9,"Religion & Spirituality",20,"religion-spirituality",{"id":46,"doc_module":4,"doc_module_name":9,"category_name":49,"show_sort_weight":46,"slug":50},"World Cup","world-cup",{"id":52,"doc_module":4,"doc_module_name":9,"category_name":53,"show_sort_weight":52,"slug":54},10,"Lifestyle","lifestyle",{"id":56,"doc_module":4,"doc_module_name":9,"category_name":57,"show_sort_weight":24,"slug":58},19,"General","general",{"code":4,"msg":60,"data":61},"ok",{"site_id":62,"language":63,"slug":64,"title":65,"keywords":66,"description":67,"schema_data":68,"social_meta":123,"head_meta":125,"extra_data":127,"updated_unix":129},105,"en","airline-deregulation-boon-or-bust","Airline Deregulation - Boon or Bust?","","The document explains how the Airline Deregulation Act of 1978 shifted key airline decisions—routes and fares—from government regulators to airlines, and evaluates the resulting changes. It analyzes benefits such as expanded competition, productivity gains, lower fares, and more frequent flights enabled by hub-and-spoke networks, while also addressing problems like unequal distribution of gains and ticket restrictions. It further considers industry competitiveness, emphasizing that regulation-like outcomes are imperfect and that route and airport concentration can create concerns about market power.",{"@graph":69,"@context":122},[70,84,105],{"@type":71,"itemListElement":72},"BreadcrumbList",[73,77,79,82],{"item":74,"name":75,"@type":76,"position":8},"https://docshare.wps.com","Home","ListItem",{"item":78,"name":9,"@type":76,"position":14},"https://docshare.wps.com/document/",{"item":80,"name":40,"@type":76,"position":81},"https://docshare.wps.com/document/research-report/",3,{"item":83,"name":65,"@type":76,"position":19},"https://docshare.wps.com/document/airline-deregulation-boon-or-bust/324377/",{"url":83,"name":65,"@type":85,"image":86,"author":91,"headline":65,"publisher":94,"fileFormat":97,"inLanguage":63,"description":67,"dateModified":98,"datePublished":99,"encodingFormat":97,"isAccessibleForFree":100,"interactionStatistic":101},"DigitalDocument",{"url":87,"@type":88,"width":89,"height":90},"https://docshare.wps.com/thumbnails/airline-deregulation-boon-or-bust/324377.png","ImageObject",300,407,{"name":92,"@type":93},"Aurelia","Person",{"url":74,"name":95,"@type":96},"DocShare","Organization","application/pdf","2026-10-24","2026-09-21",true,{"@type":102,"interactionType":103,"userInteractionCount":39},"InteractionCounter",{"@type":104},"ViewAction",{"@type":106,"mainEntity":107},"FAQPage",[108,114,118],{"name":109,"@type":110,"acceptedAnswer":111},"What changes did the Airline Deregulation Act of 1978 introduce?","Question",{"text":112,"@type":113},"It moved operational decisions such as which routes to fly and what fares to charge from government regulators back to the airlines.","Answer",{"name":115,"@type":110,"acceptedAnswer":116},"What are the main benefits of airline deregulation discussed in the document?",{"text":117,"@type":113},"Deregulation increased the degree and scope of competition, improved productivity through hub-and-spoke route networks, and contributed to lower fares and more frequent flights.",{"name":119,"@type":110,"acceptedAnswer":120},"Why does the document say airline competition may not work as predicted?",{"text":121,"@type":113},"It argues the airline industry is not perfectly contestable and that, although entry can limit how high incumbents raise fares, competitive outcomes remain imperfect, especially with increasing concentration at airports and national levels.","https://schema.org",{"og:url":83,"og:type":124,"og:title":65,"og:site_name":95,"og:description":67},"article",{"robots":126,"canonical":83},"index,follow",{"doc_id":128,"site_id":62},324377,1790724517,{"code":4,"msg":5,"data":131},{"doc_id":128,"user_id":132,"nickname":92,"user_avatar":133,"doc_module":4,"category_id":39,"category_name":40,"doc_title":65,"doc_description":67,"doc_content":134,"file_id":135,"file_url":136,"file_type":137,"file_size":138,"view_count":39,"is_deleted":4,"is_public":8,"is_downloadable":8,"audit_status":8,"page_count":24,"language":139,"language_code":63,"site_id":62,"html_lang":63,"table_of_contents":140,"faqs":141,"seo_title":142,"seo_description":67,"update_tm":143,"read_time":144,"preview_page_count":4},1099514068365,"https://ap-avatar.wpscdn.com/avatar/10000253d8d9f28188e?x-image-process=image/resize,m_fixed,w_180,h_180&k=1794309523707217728","# Airline Deregulation:Boon or Bust?\n\nby Paul W.Bauer  \nI he Airline Deregulation Act of1978 took the operational decisions ofrunning an airline(what routes to flyand what fares to charge)away fromgovenment regulators and returnedthem to the airlines.  \nOver the last decade,the airlines haveused this new freedom to institute anumber of fundamental changes in thestructure of the industry.Since 1978,discount fares have been more widelyused and the variety of restrictions onthese fares has increased,frequent flierplans have proliferated,carriers havecome and gone,and hub-and-spokeoperations have emerged.  \nThis Economic Commentary examinesthe benefits and problems that haveresulted from the deregulation of theairline industry and makes some recom-mendations for changes in publicpolicy to preserve the benefits and tomitigate the problems.  \n## ■ Benefits of Deregulation\n\nDeregulation increased both the degreeand scope of competitionin the airlineindustry.From 1938 to 1978,the CivilAeronautics Board(CAB)essentiallycontrolled the routes airlines could flyand the fares they could charge.Air-lines could only compete with oneanother by offering higher quality ser-vice than their rivals.Since the CAB—also charged with promoting the indus-try—would raise fares to cover higher  \noperating costs to ensure the financialhealth of the industry,there was little in-centive for the airlines to work to holdcosts down.The result was higher faresand higher quality of service than theaverage traveler preferred.²  \nIn a deregulated market,airlines havehad to adopt productivity-enhancingtechniques,such as the hub-and-spokeroute networks,to stay competitive.As a result,labor productivity has in-creased greatly.Since deregulation,thenumber of workers in the industry hasincreased only 48 percent,while thenumber of passengers flown has in-creased 86 percent and the number ofmiles flown has increased 109 percent.  \nThe gains in operating efficiencybrought about by competition werelargely passed on to travelers in theform of lower fares and more frequentflights.Although fares have risen somein the past year,average revenue perpassenger declined 30 percent in realterms between 1976 and 1987.³Somof the price reduction came at the ex-pense of more restrictions on tickets(not fully refundable,for example,re-quiring advance purchase,or requiringa stay over a Saturday night).About 90percent of passengers now fly on dis-counted tickets at an average discountof 60 percent off the \"regular\"coachfare according to the Air TransportAssociation.  \nMay 1,1989  \nDeregulation of the airline industryhas produced wide-ranging changesthat have created benefits and someproblems for the public.The promo-tion of safety,high-quality perfor-mance,and beneficial competitionwithin the industry should be a goalof public policy.These policy goals,however,must be based on a soundunderstanding of the market forcesbehind the post-deregulation changesin the airline industry.  \nThe hub-and-spoke route systems nowused by the airlines have resulted inmore frequent flights.Most destina-tions can now be reached with,at most,a one-stop flight;densely traveledroutes still receive nonstop service.Morrison and Winston(1987)studiedthe effect of hub-and-spoke networksand found the total benefits to pas-sengers were on the order of $5.7 bil-lion dollars a year in 1985.  \nWhile the majority of travelers havebenefited from deregulation,gainshave not been distributed evenly.While very few cities have lost air ser-vice,some did lose service by majorcarriers.These cities may be better offwith more frequent commuter airlineservice than they were under relativelyinfrequent major carrier service.⁴  \nThe benefits of lower fares are also notevenly distributed among classes ofpassengers.Fares tend to be higher onroutes served by fewer carriers.In addi-tion,business travelers often cannotmeet the requirement for discountfares.Passengers who could afford tofly before the discount fares ofderegulation must endure ","cbCaiiOX0CKpN3J8","https://ap.wps.com/l/cbCaiiOX0CKpN3J8","pdf",1091458,"English","# Airline Deregulation: Boon or Bust?\n## Benefits of Deregulation\n## Industry Competitiveness","[{\"question\":\"What changes did the Airline Deregulation Act of 1978 introduce?\",\"answer\":\"It moved operational decisions such as which routes to fly and what fares to charge from government regulators back to the airlines.\"},{\"question\":\"What are the main benefits of airline deregulation discussed in the document?\",\"answer\":\"Deregulation increased the degree and scope of competition, improved productivity through hub-and-spoke route networks, and contributed to lower fares and more frequent flights.\"},{\"question\":\"Why does the document say airline competition may not work as predicted?\",\"answer\":\"It argues the airline industry is not perfectly contestable and that, although entry can limit how high incumbents raise fares, competitive outcomes remain imperfect, especially with increasing concentration at airports and national levels.\"}]","Airline Deregulation - Boon or Bust? | PDF",1789967760,13]