Existing comment:
Deregulation: A Watershed Event
In 1978, Congress passed a law allowing airlines to set their own fares and routes, an event that transformed the industry and the passenger experience.
Regulation by the federal government had enabled airlines to prosper, but it also kept fares high and prevented airlines from operating as efficiently as possible. Many thought the Civil Aeronautics Board, which regulated aviation, had outlived its usefulness.
Congressional investigators compared fares of regulated airlines flying between states with fares of unregulated airlines flying within states. They found that unregulated airlines charged far lower fares. Sweeping change was needed, and Congress took action. |