Existing comment:
The First "Fare Wars"
New airlines operating on a nonscheduled basis began offering the first discount fares, undermining the government's regulated airfare system.
The Civil Aeronautics Board's efforts to limit competition on transcontinental routes were seriously challenged by scores of new airlines that emerged after World War II. These nonscheduled airlines, or "non-skeds," carried cargo and passengers on irregular or charter services. By combining their resources, some non-skeds were able to offer transcontinental service at discount fares, which other airlines were forced to match.
This brief episode fore–shadowed the turbulent competition to come in the late 1970s, when the government deregulated the airline industry. |