Airline Regulations

AIRLINE REGULATIONS Research Paper AVSC 1220 TREVOR CARTER ID # 10524707 *The airline industry operates like the veins of the United States by pumping precious cargo throughout the country. Most *people don’t realize how different the airlines were a few decades ago. The entire industry was regulated by the government. Regulation is usually considered a more socialistic liberal idea that is opposed by conservative capitalists. Although I personally believe in a government with a small limited *role* in our daily lives, I have come to the conclusion that the airline industry is a rare exception that needs to return to regulation which would benefit the airlines and the consumers in numerous ways. In the days of regulation the government had total control of routes, fares, gates and almost anything necessary to operate an airline. It also created many barriers to entry which would prevent any new start up airline. All the government would have to do is not allow them at any airports or not approve of any route application. Economists complained that regulation was inefficient so in 1978 the Airline Deregulation Act was passed allowing the free market to dictate airline prices and schedules. The following thirty years have proved this to be a terrible mistake. There are a wide range of facts when looking for the change in price of a ticket today compared to the airlines under regulation. Some say the tickets are 15* % cheaper. Others claim there is hardly a difference because one must account for the 10% travel agent fee that is avoided with today’s online booking. So there is clearly no great ticket price benefit due to deregulation. However in the past tickets were fully refundable and you could change your destination without numerous penalties. Today people scour the internet for a discounted ticket which will usually mean a few stops along the way that may not be in the general direction of their destination. Some passengers may have to fly