The Economic Effects of Airline Deregulation

Steven Morrison; Clifford Winston

doi:10.5771/9780815708063

Summary

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.

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Bibliographic data

Edition: 1/2010
Copyright year: 2010
ISBN-Print: 978-0-8157-5845-7
ISBN-Online: 978-0-8157-0806-3
Publisher: Rowman & Littlefield, Lanham
Language: English
Pages: 84
Product type: Book Titles

1. Contents No access
1. Preview of Findings No access
1. Hub-and-Spoke Operations No access
1. Efficiency Effects: Travelers No access
2. Efficiency Effects: Carriers No access
3. Efficiency Effects: Administrative Costs and Subsidies No access
4. Distributional Effects No access
5. Summary and Qualifications No access
1. Maximization of Travelers' Welfare No access
2. Results No access
1. Public Policy Considerations No access
6. Deregulation and the Evolution of the Airline Industry No access Pages 72 - 73
1. A. Intercity Demand Model No access
2. B. Detailed Welfare Calculations No access
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