Deregulation of the Airline Industry


The airline industry has been subject of intense price competition since
it was deregulated, and the result has been a number of new carriers which
specialize in regional service and no-frills operations. These carriers
typically purchase older aircraft and often operate outside the industry-wide
computerized reservations system. In exchange for these inconveniences,
passengers receive low fares relative to the industry as a whole. This research
examines two low fare air carriers, ValuJet and Southwest Airlines. By
investigating these air carriers, we can better understand the economic impacts
of price versus service in the airline industry as a whole, as well as, the
impacts on passenger and investor confidence.
Until 1978, air transport rates were approved by the government, which
meant that price was not a primary competitive factor. Instead, airlines would
compete on service and image. The airline industry was......

Join Now to view the rest of this term paper!
Members: Login to view this research paper.

Title: Deregulation Of The Airline Industry
Approximate Word Count: 2045
Approximate Pages: 9 (250 words per double-spaced page)

With the Term Papers Lab Membership Pass, you get instant access to every essay on this site, including this essay on Deregulation Of The Airline Industry, for as long as you remain a member.

Other essays sites charge almost $100 for a single term paper. At Term Papers Lab, you can get instant access to over 100,000 research papers for as little as $29.95!