Airline Regulation, Deregulation
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Take and explain your side on the debate over regulation or deregulation of the airline industry.
1. What is or is not working about deregulation?
2. What are some major arguments for or against deregulation?
3. What effect is deregulation having on the industry's level of competition?
4. What do you see is the future with respect to deregulation (more or less)? What impact will that have on the industry?
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1. What is or is not working about deregulation?
WORKING
- Airline deregulation has provided--and continues to provide--enormous benefits to the average traveler.
- Kindly think in the following terms: Economists from the Brookings Institution and George Mason University have estimated that consumers save some $19.4 billion per year thanks to the lower fares resulting from a competitive airline marketplace.
- American cities have been offered much greater air travel access, thanks to an aviation marketplace in which airlines are free to provide service when and where demand exists, without having to seek permission from central planners.
- You should think of the following: Millions of Americans began to fly for the first time in their lives. Airline deregulation democratized air travel in America.
NOT WORKING
- Complaints that business fares are up.
- There are some smaller cities are not receiving the kinds and amounts of air service their residents would like to have.
- Small start-up airlines can't compete effectively.
- There are continued consumer complaints about congestion and delays.
2. What are some major arguments for or against deregulation?
FOR REGULATION
- Price controls: the authority to require carriers to file rate ...
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