Airline Deregulation and Laissez faire Mythology

While much of the literature on airline deregulation praises it as a successful adventure in public policy, Professors Dempsey and Goetz conclude that deregulation has failed to achieve any of its principal objectives: better service, more ...

Author: Paul Stephen Dempsey

Publisher: Greenwood Publishing Group

ISBN: 0899306934

Category: Business & Economics

Page: 372

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While much of the literature on airline deregulation praises it as a successful adventure in public policy, Professors Dempsey and Goetz conclude that deregulation has failed to achieve any of its principal objectives: better service, more competition, or lower prices. Divided into four parts, their book assesses (1) the airlines, their corporate cultures, and the men who lead them, (2) free market economic theory and the political movement for deregulation, (3) the impact of deregulation on safety, service, concentration, and pricing, and (4) legislative solutions to the problems that have emerged.

The Economic Effects of Airline Deregulation

Morrison and Winston expect still greater benefits once the industry has had time to adjust its capital structure to the unregulated marketplace, and they recommend specific public polices to ensure healthy competition.

Author: Steven Morrison

Publisher: Brookings Institution Press

ISBN: 0815708068

Category: Business & Economics

Page: 84

View: 892

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In 1938 the U.S. Government took under its wing an infant airline industry. Government agencies assumed responsibility not only for airline safety but for setting fares and determining how individual markets would be served. Forty years later, the Airline Deregulation Act of 1978 set in motion the economic deregulation of the industry and opened it to market competition. This study by Steven Morrison and Clifford Winston analyzes the effects of deregulation on both travelers and the airline industry. The authors find that lower fares and better service have netted travelers some $6 billion in annual benefits, while airline earnings have increased by $2.5 billion a year. Morrison and Winston expect still greater benefits once the industry has had time to adjust its capital structure to the unregulated marketplace, and they recommend specific public polices to ensure healthy competition.

The Airline Industry and the Impact of Deregulation

This book explores the impact of deregulation policies on key areas of the airline industry, analyzes the response of incumbent carriers to economic freedom and examines whether or not it is possible to devise a pro-competitive regulatory ...

Author: George Williams

Publisher: Routledge

ISBN: 9781351895125

Category: Transportation

Page: 224

View: 605

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In the fast-changing theatre of air transportation, the strategic development of airlines and the operating economics of scheduled airline services have been transformed, following the profound impact of US deregulation. The lessons gleaned from the US experience, including effective ways of constraining rivals, have quickly been adopted by carriers facing the opening up to competition of their own local markets. In addition, in response to the hunt by the successful US survivors for further international traffic, carriers have been forced to emulate certain tactics adopted by these megacarriers, virtually irrespective of their own government’s regulatory stance. The economics of the sector, particularly with regard to revenue generation, has resulted in increased market concentration. In the longer term, prospects for competition remain unclear, given the likely existence of only a small number of similarly endowed, globally alligned megacarriers. This book explores the impact of deregulation policies on key areas of the airline industry, analyzes the response of incumbent carriers to economic freedom and examines whether or not it is possible to devise a pro-competitive regulatory strategy for this sector. The author provides the reader with a clear explanation as to: ¢ why airline deregulation policies have produced a number of unanticipated outcomes; ¢ why low-cost new entrants have been unable to survive under deregulation; ¢ why the impact of airline deregulation has differed between the USA and Western Europe. Using this analysis as a basis, he explores the future development of the sector, indicating the likely future trends towards globalization. He also argues that a competitive marketplace is not a guaranteed outcome of full deregulation and suggests an alternative approach. The book is of special interest to those members engaged in the airline industry, regulatory authorities and government departments of transport and industry. It wil

The Politics of Deregulation

This consensus, or at least lack of vocal opposition, was important not only for its
effect on the airline bill itself, which otherwise would not have been so radical, but
also for the significance of airline deregulation as a political precedent.

Author: Martha Derthick

Publisher: Brookings Institution Press

ISBN: 0815723040

Category: Political Science

Page: 300

View: 610

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The standard wisdom among political scientists has been that "iron triangles" operated among regulatory agencies, the regulated industries, and members of Congress, all presumably with a stake in preserving regulation that protected the industries from competition. Despite almost unanimous agreement among economists that such regulation was inefficient, it seemed highly unlikely that deregulation could occur. Yet between 1975 and 1980 major deregulatory changes that strongly favored competition did take place in a wide range of industries. The results are familiar to airline passengers, users of telephone service, and trucking freight shippers, among others. Martha Derthick and Paul J. Quirk ask why this deregulation happened. How did a diffuse public interest prevail over the powerful industry and union interests that sought to preserve regulation? Why did the regulatory commissions, which were expected to be a major obstacle to deregulation, instead take the initiative on behalf of it? And why did influential members of Congress push for even greater deregulation? The authors concentrate on three cases: airlines, trucking, and telecommunications. They find important similarities among the cases and discuss the implications of these findings for two broader topics: the role that economic analysis has played in policy change, and the capacity of the American political system for transcending narrow interests.

Airline Deregulation

This comprehensive and well-documented volume analyzes the policy-making and codification of the airline deregulation process through the 1960s and 1970s and examines the early effects of deregulation.

Author: John Robert Meyer

Publisher: Praeger

ISBN: UOM:39015002077744

Category: Business & Economics

Page: 287

View: 145

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This comprehensive and well-documented volume analyzes the policy-making and codification of the airline deregulation process through the 1960s and 1970s and examines the early effects of deregulation. It offers the industry both an historical perspective and a foundation for projecting future developments.

The US Airline Deregulation and Its Effects on Industry Structure and Competition

The purpose of this dissertation is to assess whether the consumers are receiving a greater range and more frequent airline services since the U.S. airline industry was deregulated.

Author: Filippos Servitopoulos

Publisher: Universal-Publishers

ISBN: 9781581121889

Category: Business & Economics

Page: 93

View: 419

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The purpose of this dissertation is to assess whether the consumers are receiving a greater range and more frequent airline services since the U.S. airline industry was deregulated. Are the consumers better off since deregulation? Are the airlines providing more and better services? The questions mentioned above are examined and answered in this dissertation and based on the literature available and on numerous reports and published papers, many conclusions are drawn. These conclusions can help the readers in both comprehending the complicated issue of airline deregulation and assessing whether consumers are better off since deregulation. Initially an analysis of the airline deregulation is carried out based on the literature available. Information is provided regarding when did it happen and why did it happen. Moreover a comparison of the pre and post-deregulation era is conducted. Information is also provided about the airline deregulation effects on the U.S. airline industry s structure and competition. Strategic alliances which constitute a consequence of the airline deregulation effects are also examined. After the description of both the effects of airline deregulation and strategic alliances is carried out, an analysis of them is initiated. The analysis is aiming at proving whether airline deregulation has increased the range and frequency of airline services. For this analysis, the information presented before is used and it is analysed via the use of certain management models. Through a thorough research and study on the above issues, It has become apparent to me that the opinions about the range and frequency of services offered to the customers before and after deregulation are contradictory. The conclusions that I have made are based on my own perception on those issues and are a result of an objective analysis of contradicting theories and opinions. The airline deregulation issue is very opportune in the U.S. because the airline industry is currently undergoing through a very crucial stage. Many are those who praise the airline deregulation decision, taken in the late 1970s but many are those who recollect the days of the pre-deregulation period. My own ideas are expressed through out this thesis in a way that they allow the reader to form his/her own opinion on the issue.

Aviation Infrastructure Performance

Which methods work best, and under what circumstances? This book provides the answers.

Author: Clifford Winston

Publisher: Brookings Institution Press

ISBN: 0815793960

Category: Transportation

Page: 237

View: 648

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Aviation performance is an important cog in modern globalized economies, which demand flexibility, mobility, efficiency, and dependability. Airport delays have gone from being a nuisance to being a salient public concern, drawing the ire of even the White House. In this important book, international transportation experts compare and contrast how different nations have managed their airports and air traffic control systems and how well they are meeting the needs of their people. The book's cross-national approach encompasses several different institutional arrangements, making it a timely and valuable study in comparative political economy. Among the countries studied, the United States is sometimes seen as a bastion of free markets, at the forefront of airline deregulation, but its airports and air traffic control system are publicly owned and operated. The same is true in continental Europe, for the most part. In contrast, Australia, New Zealand, the United Kingdom, and Canada are experimenting with privatization, while even mainland China is allowing the private sector to participate in airport ownership. Which methods work best, and under what circumstances? This book provides the answers.

Implementation of the Provisions of the Airline Deregulation Act of 1978

Report to Congress : as Required by Sections 1601(c), (d), and (e) of the Airline
Deregulation Act of 1978 United States. Civil Aeronautics Board. Miscellaneous
Subject Areas There are several Board programs that cut across functional lines.

Author: United States. Civil Aeronautics Board

Publisher:

ISBN: PURD:32754062122225

Category: Aeronautics and state

Page: 207

View: 721

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Airline Deregulation

The aim of this book, first published in 1991, is to examine the outcomes of deregulation on the international airline industry, and to consider whether the experiences of market liberalization reveal any common threads.

Author: Kenneth Button

Publisher: Routledge

ISBN: 9781351814461

Category: Business & Economics

Page: 200

View: 643

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The end of the twentieth century saw remarkable changes in the way that economic regulation was viewed. There occurred a liberalization of attitude and something of a withdrawal of the state from its interventionist role. These changes were particularly pronounced in the context of transport, where the long-standing tradition had been one of market intervention by the government. The aim of this book, first published in 1991, is to examine the outcomes of deregulation on the international airline industry, and to consider whether the experiences of market liberalization reveal any common threads. In particular, whether they reveal any universal indications of how underlying transport markets function; how management responds to new stimuli; the degree of protection needed by transport users; and nature of the transition process from regulation to liberalization.

Impact of Airline Deregulation

Texas International has very different views of the airline deregulation as it affects
their operations . We are well aware , Mr . Chairman , of the political and
community pressures which have arisen since October of last year as
deregulation ...

Author: United States. Congress. Senate. Committee on Commerce, Science, and Transportation. Subcommittee on Aviation

Publisher:

ISBN: UOM:39015010326919

Category: Aeronautics and state

Page: 683

View: 210

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Deregulation and Competition

This thought-provoking book chronicles the evolution of the airline industry and explains what lies ahead for airlines across the globe.

Author: Fred C Allvine

Publisher: SAGE Publications India

ISBN: 9788132101598

Category: Business & Economics

Page: 348

View: 705

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This thought-provoking book chronicles the evolution of the airline industry and explains what lies ahead for airlines across the globe. Taking the US airline industry as an in-depth case study, the authors present compelling evidence on how the paradigm shift that is taking place in the airline industry is linked to the big-bang approach to deregulation. There are lessons to be learned from the US, as Europe and Asia undergo airline deregulation from a public policy as well as a corporate perspective. This book also addresses the crucial question of what will happen to the airlines that are in turmoil. In addition to the comprehensive analysis of the airline industry’s evolution, the authors draw from extant theory as well as from their own research to predict and explain which airlines are likely to fly high and which are likely to face `turbulence` in the domestic and international markets. The downfall of legacy carriers and rise of discount carriers is analyzed in detail. Intended for a broader audience tha airline and management professionals this book would be of interest to managers and business executives of other industries, entrepreneurs, policy-makers, academics, business students and airline travellers in general.

Deregulating Desire

In Deregulating Desire, Ryan Patrick Murphy, a former flight attendant himself, chronicles the efforts of single women, unmarried parents, lesbians and gay men, as well as same-sex couples to make the airline industry a crucible for social ...

Author: Ryan Patrick Murphy

Publisher: Temple University Press

ISBN: 9781439909898

Category: History

Page: 237

View: 575

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In 1975, National Airlines was shut down for 127 days when flight attendants went on strike to protest long hours and low pay. Activists at National and many other U.S. airlines sought to win political power and material resources for people who live beyond the boundary of the traditional family. In Deregulating Desire, Ryan Patrick Murphy, a former flight attendant himself, chronicles the efforts of single women, unmarried parents, lesbians and gay men, as well as same-sex couples to make the airline industry a crucible for social change in the decades after 1970. Murphy situates the flight attendant union movement in the history of debates about family and work. Each chapter offers an economic and a cultural analysis to show how the workplace has been the primary venue to enact feminist and LGBTQ politics. From the political economic consequences of activism to the dynamics that facilitated the rise of what Murphy calls the “family values economy” to the Airline Deregulation Act of 1978, Deregulating Desire emphasizes the enduring importance of social justice for flight attendants in the twenty-first century.

White House Studies Compendium

Introduction "For the first time in decades, we have deregulated a major industry.
When I announced my own support of airline deregulation soon after taking office
, this bill had few friends. I'm happy to say that today it appears to have few ...

Author: Robert W. Watson

Publisher: Nova Publishers

ISBN: 1600215211

Category: History

Page: 528

View: 956

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The American presidency has become one of the most powerful offices in the world with the ascendancy of American power in the 20th century. This book brings together piercing analyses of the American presidency -- dealing with both current issues and historical events. The compendia are the bound issues of 'White House Studies' with the addition of a comprehensive subject index as well as rearranged.

Deregulating the Airlines

Daniel Kaplan is director of the Board's Office of Economic Analysis.David R. Graham, manager of the Defense Economics Program at the Institute for Defense Analysis, wasa Board economist.Deregulating the Airlines is tenth in the series, ...

Author: Elizabeth E. Bailey

Publisher: MIT Press

ISBN: 0262022133

Category: Business & Economics

Page: 243

View: 167

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The airline industry has been buffeted by the forces of deregulation since themid-1970s. Many new firms have entered, some with different price and operating philosophies andsome of these have thrived. Other airlines have gone bankrupt. Overall the real cost of air travelhas declined considerably; however, the effects have varied dramatically from market to market.Exactly how was this massive experiment envisioned and planned? How has it worked? And how will itwork in the long run?Deregulating the Airlines narrates and analyzes the decisions taken by theCivil Aeronautics Board during the transition to deregulation and the reasoning behind the AirlineDeregulation Act of 1978. It provides many comparisons of the industry before and after deregulationand uses those data to test the various hypotheses that scholars and politicians have advanced abouthow markets would behave if regulation were removed. Its findings provide information on both thedemand and the cost side that will be important in molding the long-run equilibrium of the industry,and it discusses how quickly the industry is moving toward that equilibrium.For policymakers andstudents of regulation in particular, this study provides a unique case for contrasting theoperation of an industry under close regulatory control and its operation free of such controls. Itis able to make use of an unusually large volume of data on the costs, operations, and prices ofindividual firms to show how markets work and how regulation works.The book's in-depth analysis ofthe impact of policy changes in the airline industry is drawn in part from the authors' activeinvolvement in implementing the new policies. Elizabeth Bailey is Dean of the Graduate School ofIndustrial Administration at Carnegie-Mellon. Previously she was a commissioner and vice chairman atthe Civil Aeronautics Board. Daniel Kaplan is director of the Board's Office of Economic Analysis.David R. Graham, manager of the Defense Economics Program at the Institute for Defense Analysis, wasa Board economist.Deregulating the Airlines is tenth in the series, Regulation of Economic Activity,edited by Richard Schmalensee.

The Evolution of the Airline Industry

In this book, Steven A. Morrison and Clifford Winston assert that all too often public discussion of the issues of airline competition, profitability, and safety take place without a firm understanding of the facts.

Author: Steven Morrison

Publisher: Brookings Institution Press

ISBN: 081572120X

Category: Business & Economics

Page: 188

View: 659

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Since the enactment of the Airline Deregulation Act in 1978, questions that had been at the heart of the ongoing debate about the industry for eighty years gained a new intensity: Is there enough competition among airlines to ensure that passengers do not pay excessive fares? Can an unregulated airline industry be profitable? Is air travel safe? While economic regulation provided a certain stability for both passengers and the industry, deregulation changed everything. A new fare structure emerged; travelers faced a variety of fares and travel restrictions; and the offerings changed frequently. In the last fifteen years, the airline industry's earnings have fluctuated wildly. New carriers entered the industry, but several declared bankruptcy, and Eastern, Pan Am, and Midway were liquidated. As financial pressures mounted, fears have arisen that air safety is being compromised by carriers who cut costs by skimping on maintenance and hiring inexperienced pilots. Deregulation itself became an issue with many critics calling for a return to some form of regulation. In this book, Steven A. Morrison and Clifford Winston assert that all too often public discussion of the issues of airline competition, profitability, and safety take place without a firm understanding of the facts. The policy recommendations that emerge frequently ignore the long-run evolution of the industry and its capacity to solve its own problems. This book provides a comprehensive profile of the industry as it has evolved, both before and since deregulation. The authors identify the problems the industry faces, assess their severity and their underlying causes, and indicate whether government policy can play an effective role in improving performance. They also develop a basis for understanding the industry's evolution and how the industry will eventually adapt to the unregulated economic environment. Morrison and Winston maintain that although the airline industry has not reached long-run equilibrium, its evolution is proceeding in a positive direction—one that will preserve and possibly enhance the benefits of deregulation to travelers and carriers. They conclude that the federal government's primary policy objective should be to expand the benefits from unregulated market forces to international travel. Brookings Review article also available

Collision Course

Quorum Books, 1992), 169–174, Richard H. K. Vietor, “Contrived Competition:
Airline Regulation and Deregulation, 1925–1988,” Business History Review 64:1
(Spring 1990): 74– 75, Anthony E. Brown, The Politics of Airline Deregulation ...

Author: Joseph A. McCartin

Publisher: Oxford University Press

ISBN: 9780199912056

Category: History

Page: 504

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In August 1981, the Professional Air Traffic Controllers Organization (PATCO) called an illegal strike. The new president, Ronald Reagan, fired the strikers, establishing a reputation for both decisiveness and hostility to organized labor. As Joseph A. McCartin writes, the strike was the culmination of two decades of escalating conflict between controllers and the government that stemmed from the high-pressure nature of the job and the controllers' inability to negotiate with their employer over vital issues. PATCO's fall not only ushered in a long period of labor decline; it also served as a harbinger of the campaign against public sector unions that now roils American politics. Now available in paperback, Collision Course sets the strike within a vivid panorama of the rise of the world's busiest air-traffic control system. It begins with an arresting account of the 1960 midair collision over New York that cost 134 lives and exposed the weaknesses of an overburdened system. Through the stories of controllers like Mike Rock and Jack Maher, who were galvanized into action by that disaster and went on to found PATCO, it describes the efforts of those who sought to make the airways safer and fought to win a secure place in the American middle class. It climaxes with the story of Reagan and the controllers, who surprisingly endorsed the Republican on the promise that he would address their grievances. That brief, fateful alliance triggered devastating miscalculations that changed America, forging patterns that still govern the nation's labor politics. Written with an eye for detail and a grasp of the vast consequences of the PATCO conflict for both air travel and America's working class, Collision Course is a stunning achievement.