The Economic Effects Of Airline Deregulation

Author : Steven Morrison,Clifford Winston
Publisher : Brookings Institution Press
Page : 100 pages
File Size : 40,7 Mb
Release : 2010-12-01
Category : Business & Economics
ISBN : 0815708068

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The Economic Effects of Airline Deregulation by Steven Morrison,Clifford Winston Pdf

In 1938 the U.S. Government took under its wing an infant airline industry. Government agencies assumed responsibility not only for airline safety but for setting fares and determining how individual markets would be served. Forty years later, the Airline Deregulation Act of 1978 set in motion the economic deregulation of the industry and opened it to market competition. This study by Steven Morrison and Clifford Winston analyzes the effects of deregulation on both travelers and the airline industry. The authors find that lower fares and better service have netted travelers some $6 billion in annual benefits, while airline earnings have increased by $2.5 billion a year. Morrison and Winston expect still greater benefits once the industry has had time to adjust its capital structure to the unregulated marketplace, and they recommend specific public polices to ensure healthy competition.

Author : Elizabeth E. Bailey,David R. Graham,Daniel P. Kaplan
Publisher : Unknown
Page : 468 pages
File Size : 43,8 Mb
Release : 1983
Category : Airlines
ISBN : NWU:35556021337282

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Deregulating the Airlines by Elizabeth E. Bailey,David R. Graham,Daniel P. Kaplan Pdf

Author : George Williams
Publisher : Routledge
Page : 180 pages
File Size : 41,8 Mb
Release : 2017-03-02
Category : Transportation
ISBN : 9781351895125

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The Airline Industry and the Impact of Deregulation by George Williams Pdf

In the fast-changing theatre of air transportation, the strategic development of airlines and the operating economics of scheduled airline services have been transformed, following the profound impact of US deregulation. The lessons gleaned from the US experience, including effective ways of constraining rivals, have quickly been adopted by carriers facing the opening up to competition of their own local markets. In addition, in response to the hunt by the successful US survivors for further international traffic, carriers have been forced to emulate certain tactics adopted by these megacarriers, virtually irrespective of their own government’s regulatory stance. The economics of the sector, particularly with regard to revenue generation, has resulted in increased market concentration. In the longer term, prospects for competition remain unclear, given the likely existence of only a small number of similarly endowed, globally alligned megacarriers. This book explores the impact of deregulation policies on key areas of the airline industry, analyzes the response of incumbent carriers to economic freedom and examines whether or not it is possible to devise a pro-competitive regulatory strategy for this sector. The author provides the reader with a clear explanation as to: ¢ why airline deregulation policies have produced a number of unanticipated outcomes; ¢ why low-cost new entrants have been unable to survive under deregulation; ¢ why the impact of airline deregulation has differed between the USA and Western Europe. Using this analysis as a basis, he explores the future development of the sector, indicating the likely future trends towards globalization. He also argues that a competitive marketplace is not a guaranteed outcome of full deregulation and suggests an alternative approach. The book is of special interest to those members engaged in the airline industry, regulatory authorities and government departments of transport and industry. It wil

Author : Barbara Bilyk
Publisher : GRIN Verlag
Page : 12 pages
File Size : 46,8 Mb
Release : 2009-11-02
Category : Science
ISBN : 9783640463923

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Effects of Deregulation in the Aviation Industry by Barbara Bilyk Pdf

Seminar paper from the year 2009 in the subject Politics - Environmental Policy, grade: Distinction, Swinburne University of Technology, Melbourne, course: Aviation Regulation, Environment and Operation , language: English, abstract: Starting in the USA where deregulation of air transportation began in the late seventies, this trend was observable throughout Europe in the eighties and Australia at the beginning of the nineties. The major arguments for liberalisation were in general a reduction of capacity constraints and a simplified market access (Himpel & Lipp 2006, p.26). Constitutional for these ideas is the theory of contestable markets which assumes the efficiency of competition with a free market entry and market exit. Therefore deregulation processes aim at providing a better, safer and more efficient industry. However, Geoffrey Thomas (2008) among others points out that in reality the liberalisation of air transportation has caused predominantly negative outcomes which is why there should be a return to some degree of regulation. Based on Thomas’ train of thoughts, this research paper is aimed at critically evaluating the effects of liberalisation both on the aviation industry and on the consumer. The paper is therefore structured as follows: after revealing the limitations of the evaluation, positive effects of liberalisation in Europe, the United States and Australia are outlined which are then opposed to negative effects. Based on these findings, a conclusion is finally drawn.

Author : Dipendra Sinha
Publisher : Routledge
Page : 226 pages
File Size : 48,5 Mb
Release : 2019-07-16
Category : Transportation
ISBN : 9781351753357

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Deregulation and Liberalisation of the Airline Industry by Dipendra Sinha Pdf

This title was first published in 2001. By giving long over-due detailed consideration to airline deregulation in countries other than the US, Dipendra Sinha makes a unique contribution to the literature on airline deregulation and transport economics.

Author : John Robert Meyer,Clinton Oster
Publisher : Praeger
Page : 328 pages
File Size : 54,8 Mb
Release : 1981-07-30
Category : Business & Economics
ISBN : UOM:39015002077744

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Airline Deregulation by John Robert Meyer,Clinton Oster Pdf

This comprehensive and well-documented volume analyzes the policy-making and codification of the airline deregulation process through the 1960s and 1970s and examines the early effects of deregulation. It offers the industry both an historical perspective and a foundation for projecting future developments.

Author : Aisling J. Reynolds-Feighan
Publisher : Springer Science & Business Media
Page : 143 pages
File Size : 53,8 Mb
Release : 2012-12-06
Category : Science
ISBN : 9783642770616

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The Effects of Deregulation on U.S. Air Networks by Aisling J. Reynolds-Feighan Pdf

1. 1 A Brief History of U. S. Commercial Aviation Regulation and Deregulation The U. S. commercial aviation industry was regulated by the government for a period of 40 years, beginning in 1938 with. the passing of the Federal Aviation Act, and ending in October 1978 when President Carter signed into law the Airline Deregulation Act (ADA). There were 16 airlines in existence when the Federal Aviation Act was passed in 1938 (the so-called 'trunk lines'). The Act established the Civil Aeronautics Authority (CAA) as the industry's regulatory body. The Act was passed principally because it was felt that the free market, if allowed to continue unregulated for much longer, would put many of these firms into bankruptcy. It is possible therefore to view the CAA of 1938 (re-organized into the Civil Aeronautics Board (CAB) in 1940) as a response to a potential market failure at the time. In the 1930s, few air traffic markets could have efficiently"supported more than one airline operating in the market [Panzar (1980)]. Competition among the carriers was cut-throat, and it was felt that the near bankruptcy of the airlines in the period was caused principally by the competitive bidding system used by the Post Office in allotting airmail subsidies [Keeler (1972), Caves (1962)].

Author : Kenneth Button
Publisher : Routledge
Page : 204 pages
File Size : 46,9 Mb
Release : 2017-04-21
Category : Business & Economics
ISBN : 9781351814461

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Airline Deregulation by Kenneth Button Pdf

The end of the twentieth century saw remarkable changes in the way that economic regulation was viewed. There occurred a liberalization of attitude and something of a withdrawal of the state from its interventionist role. These changes were particularly pronounced in the context of transport, where the long-standing tradition had been one of market intervention by the government. The aim of this book, first published in 1991, is to examine the outcomes of deregulation on the international airline industry, and to consider whether the experiences of market liberalization reveal any common threads. In particular, whether they reveal any universal indications of how underlying transport markets function; how management responds to new stimuli; the degree of protection needed by transport users; and nature of the transition process from regulation to liberalization.

Author : Paul S. Dempsey,Andrew R. Goetz
Publisher : Bloomsbury Publishing USA
Page : 392 pages
File Size : 44,9 Mb
Release : 1992-09-08
Category : Business & Economics
ISBN : 9780313066603

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Airline Deregulation and Laissez-Faire Mythology by Paul S. Dempsey,Andrew R. Goetz Pdf

Airline deregulation is a failure, conclude Professors Dempsey and Goetz. They assault the conventional wisdom in this provocative book, finding that the Airline Deregulation Act of 1978, championed by a profound political movement which also advocated the deregulation of the bus, trucking, rail, and pipeline industries, failed to achieve the promises of its proponents. Only now is the full impact of deregulation being felt. Airline deregulation has resulted in unprecedented industry concentration, miserable service, a deterioration in labor-management relations, a narrower margin of safety, and higher prices for the consumer. This comprehensive book begins by exploring the strategy, tactics, and egos of the major airline robber barons, including Frank Lorenzo and Carl Icahn. In separate chapters, the strengths, weaknesses, and corporate cultures of each of the major airlines are evaluated. Part Two assesses the political, economic, and social justifications for New Deal regulation of aviation, and its deregulation in the late 1970s. Part Three then addresses the major consequences of deregulation in chapters on concentration, pricing, service, and safety, and Part Four advances a legislative agenda for solving the problems that have emerged. Professors Dempsey and Goetz advocate a middle course of responsible government supervision between the dead hand of regulation of the 1930s and the contemporary evil of market Darwinism. The book will be of particular interest to airline and airport industry executives, government officials, and students and scholars in public policy, economics, business, political science, and transportation.

Author : Steven Morrison,Clifford Winston
Publisher : Brookings Institution Press
Page : 188 pages
File Size : 48,9 Mb
Release : 2010-12-01
Category : Business & Economics
ISBN : 081572120X

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The Evolution of the Airline Industry by Steven Morrison,Clifford Winston Pdf

Since the enactment of the Airline Deregulation Act in 1978, questions that had been at the heart of the ongoing debate about the industry for eighty years gained a new intensity: Is there enough competition among airlines to ensure that passengers do not pay excessive fares? Can an unregulated airline industry be profitable? Is air travel safe? While economic regulation provided a certain stability for both passengers and the industry, deregulation changed everything. A new fare structure emerged; travelers faced a variety of fares and travel restrictions; and the offerings changed frequently. In the last fifteen years, the airline industry's earnings have fluctuated wildly. New carriers entered the industry, but several declared bankruptcy, and Eastern, Pan Am, and Midway were liquidated. As financial pressures mounted, fears have arisen that air safety is being compromised by carriers who cut costs by skimping on maintenance and hiring inexperienced pilots. Deregulation itself became an issue with many critics calling for a return to some form of regulation. In this book, Steven A. Morrison and Clifford Winston assert that all too often public discussion of the issues of airline competition, profitability, and safety take place without a firm understanding of the facts. The policy recommendations that emerge frequently ignore the long-run evolution of the industry and its capacity to solve its own problems. This book provides a comprehensive profile of the industry as it has evolved, both before and since deregulation. The authors identify the problems the industry faces, assess their severity and their underlying causes, and indicate whether government policy can play an effective role in improving performance. They also develop a basis for understanding the industry's evolution and how the industry will eventually adapt to the unregulated economic environment. Morrison and Winston maintain that although the airline industry has not rea

Author : United States. Congress. Senate. Committee on Small Business. Subcommittee on Rural Economy and Family Farming
Publisher : Unknown
Page : 214 pages
File Size : 52,5 Mb
Release : 1988
Category : Aeronautics, Commercial
ISBN : LOC:00003114314

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The Effect of Airline Deregulation on the Rural Economy by United States. Congress. Senate. Committee on Small Business. Subcommittee on Rural Economy and Family Farming Pdf

Author : Anthony P. Ellison,Economic Council of Canada
Publisher : Unknown
Page : 192 pages
File Size : 43,7 Mb
Release : 1981
Category : Aeronautics and state
ISBN : STANFORD:36105039147157

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U.S. Airline Deregulation by Anthony P. Ellison,Economic Council of Canada Pdf

Author : United States. Congress. Senate. Committee on Small Business. Subcommittee on Competition and Antitrust Enforcement
Publisher : Unknown
Page : 152 pages
File Size : 48,9 Mb
Release : 1987
Category : Aeronautics, Commercial
ISBN : LOC:00003115161

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The Effects of Airline Deregulation on Airline Service to Small-and Medium-sized Communities and Small Businesses by United States. Congress. Senate. Committee on Small Business. Subcommittee on Competition and Antitrust Enforcement Pdf

Author : Matthias Finger,Kenneth Button
Publisher : Edward Elgar Publishing
Page : 400 pages
File Size : 50,9 Mb
Release : 2017-12-29
Category : Electronic
ISBN : 9781786431868

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Air Transport Liberalization by Matthias Finger,Kenneth Button Pdf

This groundbreaking book offers a critical and wide-ranging assessment of the global air transport liberalization process over the past 40 years. This compilation of world experts on air transport economics, policy, and regulation is timely and significant, considering that air transport is currently facing a series of new challenges due to technological changes, the emergence of new markets, and increased security concerns.

Author : Nancy L. Rose
Publisher : University of Chicago Press
Page : 619 pages
File Size : 48,8 Mb
Release : 2014-08-29
Category : Business & Economics
ISBN : 9780226138169

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Economic Regulation and Its Reform by Nancy L. Rose Pdf

The past thirty years have witnessed a transformation of government economic intervention in broad segments of industry throughout the world. Many industries historically subject to economic price and entry controls have been largely deregulated, including natural gas, trucking, airlines, and commercial banking. However, recent concerns about market power in restructured electricity markets, airline industry instability amid chronic financial stress, and the challenges created by the repeal of the Glass-Steagall Act, which allowed commercial banks to participate in investment banking, have led to calls for renewed market intervention. Economic Regulation and Its Reform collects research by a group of distinguished scholars who explore these and other issues surrounding government economic intervention. Determining the consequences of such intervention requires a careful assessment of the costs and benefits of imperfect regulation. Moreover, government interventions may take a variety of forms, from relatively nonintrusive performance-based regulations to more aggressive antitrust and competition policies and barriers to entry. This volume introduces the key issues surrounding economic regulation, provides an assessment of the economic effects of regulatory reforms over the past three decades, and examines how these insights bear on some of today’s most significant concerns in regulatory policy.