The Effect of the 1978 Deregulation Act upon Specified Factors within the United States Domestic Airline Industry

Author

Bridgett Renee Harris, Fontbone College

Year of Award

1987

Degree

Master of Business Administration (MBA)

College

College of Business & Professional Studies

Degree Program

Business

Department

Business Administration

Keywords

Consumer, Air Transport, Domestic, Aircraft, Carriers, Hub-and-spoke

Abstract

The airline industry has been inflicted by many changes as a result of the 1978 Deregulation Act. These changes have initiated numerous impacts upon the industry and society as a whole. A great deal of industries outside the realms of air transportation have experienced various changes due to deregulation of the airlines. The scope of these changes vary in intensity as well as in nature. The evident results of the impact of deregulation upon the industry range from relatively insignificant to devastating. The air transport consumer served as a major witness to airline changes due to deregulation. The airline customer is subjected to variation air transportation prices which range from rock bottom rates to outrageously high for the same route. The consumer has also noticed both convenient and inconvenient alterations in flight scheduling.

The advent of deregulation cast the airline industry into a new wave of competition of which it was unaccustomed. The new competitiveness in turn attributed to many of the apparent changes observed in the airline industry. Whether or not the increased competitive edge was favorable for the industry is a debatable issue. Yet, it was assessed that air transport could function productively without regulation, which was a primary argument in its behalf. The release of the air industry from regulation anticipated the promotion ease of entry into the industry and competitive market forces.

There are a great many factors that were completely changed, altered, or alleviated with the onset of deregulation of the airline industry. The list of which could go on indefinitely. It is for this reason that certain specified factors victimized by change have been identified as primary and analyzed through this research. These crucial and primary areas of change include; industry structure, costs and operating efficiency, domestic airline pricing, financial performance, domestic airline scheduling, and aviation safety. These have been identified as key issues. These are the highest prevailing factors most imperative to the airline industry and most subject to change due to the Airline Deregulation Act of 1978.

Document Type

Restricted Thesis

Recommended Citation

Harris, Bridgett Renee, "The Effect of the 1978 Deregulation Act upon Specified Factors within the United States Domestic Airline Industry" (1987). All Theses, Dissertations, and Capstone Projects. 586.
https://griffinshare.fontbonne.edu/all-etds/586