The Economic Effects of Airline Deregulation

The Economic Effects of Airline Deregulation
Author: Steven Morrison
Publisher: Brookings Institution Press
Total Pages: 100
Release: 2010-12-01
Genre: Business & Economics
ISBN: 9780815708063

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.

The Evolution of the Airline Industry

The Evolution of the Airline Industry
Author: Steven Morrison
Publisher: Brookings Institution Press
Total Pages: 188
Release: 2010-12-01
Genre: Business & Economics
ISBN: 9780815721208

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

Economic Regulation and Its Reform

Economic Regulation and Its Reform
Author: Nancy L. Rose
Publisher: University of Chicago Press
Total Pages: 619
Release: 2014-08-29
Genre: Business & Economics
ISBN: 022613816X

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.

Deregulation and Liberalisation of the Airline Industry

Deregulation and Liberalisation of the Airline Industry
Author: Dipendra Sinha
Publisher: Routledge
Total Pages: 226
Release: 2019-07-16
Genre: Transportation
ISBN: 1351753355

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.

Flying the Line

Flying the Line
Author: George E. Hopkins
Publisher: Nicholson
Total Pages: 360
Release: 1996
Genre: Air pilots
ISBN: 9780960970810

Up in the Air

Up in the Air
Author: Greg J. Bamber
Publisher: Cornell University Press
Total Pages: 237
Release: 2013-07-15
Genre: Business & Economics
ISBN: 0801457092

"And you thought the passengers were mad. Airline employees are fed up, too-with pay cuts, increased workloads and management's miserly ways, which leave workers to explain to often-enraged passengers why flying has become such a miserable experience."—New York Times, December 22, 2007When both an industry's workers and its customers report high and rising frustration with the way they are being treated, something is fundamentally wrong. In response to these conditions, many of the world's airlines have made ever-deeper cuts in services and their workforces. Is it too much to expect airlines, or any other enterprise, to provide a fair return to investors, high-quality reliable service to their customers, and good jobs for their employees?Measured against these three expectations, the airline industry is failing. In the first five years of the twenty-first century alone, U.S. airlines lost a total of $30 billion while shedding 100,000 jobs, forcing the remaining workers to give up over $15 billion in wages and benefits. Combined with plummeting employee morale, shortages of air traffic controllers, and increased congestion and flight delays, a total collapse of the industry may be coming. Is this state of affairs inevitable? Or is it possible to design a more sustainable, less volatile industry that better balances the objectives of customers, investors, employees, and the wider society? Does deregulation imply total abrogation of government's responsibility to oversee an industry showing the clear signs of deterioration and increasing risk of a pending crisis?Greg J. Bamber, Jody Hoffer Gittell, Thomas A. Kochan, and Andrew von Nordenflycht explore such questions in a well-informed and engaging way, using a mix of quantitative evidence and qualitative studies of airlines from North America, Asia, Australia, and Europe. Up in the Air provides clear and realistic strategies for achieving a better, more equitable balance among the interests of customers, employees, and shareholders. Specifically, the authors recommend that firms learn from the innovations of companies like Southwest and Continental Airlines in order to build a positive workplace culture that fosters coordination and commitment to high-quality service, labor relations policies that avoid long drawn-out conflicts in negotiating new agreements, and business strategies that can sustain investor, employee, and customer support through the ups and downs of business cycles.

Aviation Systems

Aviation Systems
Author: Andreas Wittmer
Publisher: Springer Science & Business Media
Total Pages: 247
Release: 2011-08-17
Genre: Political Science
ISBN: 364220080X

This book aims to provide comprehensive coverage of the field of air transportation, giving attention to all major aspects, such as aviation regulation, economics, management and strategy. The book approaches aviation as an interrelated economic system and in so doing presents the “big picture” of aviation in the market economy. It explains the linkages between domains such as politics, society, technology, economy, ecology, regulation and how these influence each other. Examples of airports and airlines, and case studies in each chapter support the application-oriented approach. Students and researchers in business administration with a focus on the aviation industry, as well as professionals in the industry looking to refresh or broaden their knowledge of the field will benefit from this book.

Rapid Descent

Rapid Descent
Author: Barbara Sturken Peterson
Publisher:
Total Pages: 376
Release: 1994
Genre: Business & Economics
ISBN:

Examines the U.S. airline industry during its 18 years of deregulation

Ethical Issues in Aviation

Ethical Issues in Aviation
Author: Dr Elizabeth A Hoppe
Publisher: Ashgate Publishing, Ltd.
Total Pages: 510
Release: 2012-10-01
Genre: Technology & Engineering
ISBN: 1409486613

Applied ethics has been gaining wide attention in a variety of curriculums, and there is growing awareness of the need for ethical training in general. Well-publicized ethical problems such as the Challenger disaster, the Ford Pinto case and the collapse of corporations such as Enron have highlighted the need to rethink the role of ethics in the workplace. The concept of applied ethics originated in medicine with a groundbreaking book published in 1979. Business ethics books began to appear in the 1980s, with engineering ethics following in the 1990s. This volume now opens up a new area of applied ethics, comprehensively addressing the ethical issues confronting the civil aviation industry. Aviation is unique in two major ways: firstly it has a long history of government regulations, and secondly its primary focus is the safety of its passengers and crew. For decades commercial aviation was viewed in the same manner as public utilities, and thus it was highly regulated by the government. Since the Deregulation Act of 1978, aviation has been viewed as any other business while other experts continue to believe that the sudden switch to deregulation has caused problems, especially since many airlines were unprepared for the change. Ethical Issues in Aviation focuses on current concerns and trends, to reflect the changes that have occurred in this deregulated era. The book provides the reader with an overview of the major themes in civil aviation ethics. It begins with theoretical frameworks, followed by sections on the business side of aviation, employee responsibility, diversity in aviation, ground issues regarding airports, air traffic control and security, as well as health and the environment. The contributors to the volume include both academics doing research in the field as well as professionals who provide accounts of the ethical situations that arise in the workplace.

The Airport Business

The Airport Business
Author: Professor Rigas Doganis
Publisher: Routledge
Total Pages: 245
Release: 2005-08-18
Genre: Business & Economics
ISBN: 1134892829

Placing the airport business within a conceptual framework, the author examines the major global issues that confront it and offers solutions to the economic and financial difficulties likely to arise in the future.