Airline Deregulation

1054 WordsSep 30, 19995 Pages
On October 24, 1978, President Carter signed into law the Airline Deregulation Act. The purpose of the law was to effectively get the federal government out of the airline business. By allowing the airlines to compete for their customers' travel dollars, was the thinking, that fares would drop and an increased number of routes would spring up. Expected Results The results of airline deregulation speak for themselves. Since the government got out of the airline business, not only has there been a drop in prices and an increase in routes, there has also been a remarkable increase in airline service and safety. Airline deregulation should be seen as the crowning jewel of a federal de-regulatory emphasis. Prices are down: Airline…show more content…
But the legislation winding its way through the legislative maze that is Congress does anything but move towards increased privatization. S. 1331, sponsored by Senator John McCain (R-AZ), would make it more difficult for large carriers to offer low fares. The justification for this action it to make entry into the market easier, and therefore increase competitiveness within the industry. But while this may enable small airlines to enter markets, it essentially creates an affirmative-action program for corporations that are inefficient by reserving runway space for these airlines. The only good language in the Senate bill is that which would eliminate perimeter restrictions on Washington's Ronald Reagan Airport. This would kill the rule that prevents flights to and from National from more than 1250 miles away. While this may just be a measure so that Congressmen won't have to drive to the out-of-town Dulles Airport in Virginia, it is a good precedent to set for other airports and the elimination of market restrictions. The House has a companion bill, H.R. 2748, which does not go as far as the Senate bill in its regulatory language. But Speaker Newt Gingrich (R-GA) has predicted that Congress will pass some airline bill this term. A senior aide for a Republican on the House Transportation and Infrastructure Committee said, "I don't know if the two sides will come together this year." So the legislative status of the
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