The United States Airline Deregulation Act of 1978 was a strategy that lifted the restrictions that dictated where airlines were allowed to fly and where they were forbidden from flying. The main objective of the Act was to promote competitiveness within the airline sector. After the deregulation, the airlines adopted a system known as ‘the hub and spoke’ with the aid of some of the leading airports which acted as the central points of connection. It resulted to a maximized use of aircrafts, there was also an increase in the number of passengers that used the airline and it also led to an increase in the number of aircrafts that were flying on a daily basis.
The United States Airline Deregulation Act of 1978 partially led to a shift of the dominance over airlines from the political sphere to the economic sphere which was a much-needed action. The entry, exit and also the pricing of the services offered in the airlines were previously controlled by The Civil Aeronautics Board. The board also took part in any issues brought about by the airline users, any agreements involving the airlines and also any merges that that airlines took part in. The rules set by The Civil Aeronautics Board gave airlines a limited business freedom (Movieman695, 2013) which was greatly opposed by the public who believed that the airlines needed to be allowed to make their own business choices. The control that CAB had on the airlines was seized in December 31, 1984 which resulted in the liberation of the airlines based on the realization that the political control that The Civil Aeronautics Board had on the airlines’ economy did not serve the interests of the public.
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The shift of dominance brought about positive changes in the airline sector. There was an adjustment in the cost of air travelling that resulted to a drop in the prices of airline tickets which made it affordable to more people. The affordability led to a dramatic increase in the number of people that travelled by air. The deregulation also caused the reconfiguration of the airline’s routes and also the equipment in the planes which led to a maximum capacity utilization of the airplanes. The positive changes made the airlines efficient therefore made air travel more convenient since the passengers were offered a variety of convenient travel options and there was also an increase in the frequency of the variety of available flights. There were also few occasions where a passenger had to change airlines to make connections before arriving at their destination hence efficient travel coordination. The deregulation made air travel accessible to more people and improved consumer satisfaction hence an improvement in the economy.
The airline deregulation was inevitable since the airline department needed freedom from political dictatorship. There were also objectives that needed to be met to ensure the growth and prosperity of the airline sector economically. These were flexibility in the pricing of airline tickets so as to accommodate every member of the public no matter their financial status and also the flexibility of the airlines movements to avoid inconveniences. The deregulation act resulted to a change in the airline’s priorities whereby it now focused on the consumer satisfaction. The deregulation shaped the industry to what it currently is and that it the reason behind the freedom that people enjoy where they can move from one state to another conveniently and at affordable prices ( Schiller, 2019) . The airline industry should be liberated and left to make its own business choices to enhance growth and development.
References
Movieman695. (2013). Airline Deregulation: The Document That Transformed the Industry[Video]. YouTube. https://www.youtube.com/watch?v=Mh47zb615X8&t=2s
Schiller, R. (2019). The curious origins of airline deregulation: Economic deregulation and the American left. Business History Review , 93 (4), 729-753.
