Question

9b）What was the driving force behind deregulation of the airline industry? What kind of shock was happening in the market just prior to deregulation? What would have happened in the industry without deregulation?

Would we be better off under regulation? Should we re-regulate the airline industry? Are you happy with price, availability, and quality of the airline experience?

Answer 1

Airfares were too high , lengthy delays and 1973 oil crisis and stagflation radically changed the economic environment as well as technological advances were few driving forces behind deregulation. Consumers felth that pricing was against them , and air line was just charging huge fares.

The oil crisis and technological innovation were the shocks prior to deregulation. If there would be no deregulation - there would monopoly , high fares and limited experiences.

Yes , deregulation indeed prooves better , with competative price and increased no of flights with better quality.