EFFECTS OF AIRLINE DEREGULATION ON PROFITABILITY

This paper investigates the effect of the Airline Deregulation Act of 1978 on the airline industry's profits. Since regulation diverted carrier rivalry into cost-increasing service competition, deregulation should not affected profits significantly, provided increased carrier efficiency was reflected in sufficiently lower airline fares. Using a two-stage regression model, industry profits were not found to have been affected to any appreciable extent by deregulation.

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  • Accession Number: 00484671
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Jun 30 1989 12:00AM