Deregulation of Aviation

The airline industry has been subject of intense price competition since it was deregulated, and the result has been a number of new carriers which specialize in regional service and no-frills operations. These carriers typically purchase older aircraft and often operate outside the industry-wide computerized reservations system. In exchange for these inconveniences, passengers receive low fares relative to the industry as a whole. This research examines two low fare air carriers, ValuJet and Southwest Airlines. …

…for the airlines affect passenger safety? If the trend toward more airline disasters continues and those accidents can be attributed to cost-cutting measures, surely Congress will intervene. The airline industry must be disciplined in its approach to solving the economic pressures, while, at the same time stay focused on safety issues. If the airline industry is to survive and give the consumer choices, passenger confidence cannot be sacrificed for the sake of the bottom line!