Deregulation: increased competition is making airlines more efficient and responsive to consumers
Technical Report
·
OSTI ID:5604239
The Airline Deregulation Act of 1978 gave domestic airlines, after 40 years of regulation, the freedom to decide where they would fly and what fares they would charge. GAO's review of airline operations before and after deregulation through 1984 shows that most passengers benefited as the industry became more competitive: fare increases were lower, on average, than what might have been expected under continued regulation; the numbers of flights and available seats increased; airlines have been more responsive to consumer preferences through a wider range of price/service options; and operating efficiency has increased. Increasing airport congestion may bring federal action to restrict airline access - action that could offset some of deregulation's benefits. While some favorable trends in fares and services have emerged, further changes are likely as airlines continue to adapt to deregulation.
- Research Organization:
- General Accounting Office, Washington, DC (USA). Resources, Community and Economic Development Div.
- OSTI ID:
- 5604239
- Report Number(s):
- GAO/RCED-86-26; ON: TI86901467
- Country of Publication:
- United States
- Language:
- English
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