AIRLINE ENTRY, EXIT AND MARKET SHARES FOLLOWING DEREGULATION

This paper investigates the extent to which airlines entered and left the U.S. airline industry after deregulation was enacted in October 1978. From 23 certificated interstate passenger airlines operating jet aircraft in 1978, the entry of 91 startup carriers and the subsequent exit of 77 carriers resulted in the total number of jet airlines varying from a high of 63 in 1984 to a low of 28 in 1990. The 39 airlines providing interstate passenger service in 1994 were more than double the 19 certificated carriers that existed in 1982 after the last merger authorized by the Civil Aeronautics Board. This paper also shows that system scheduled revenue passenger-miles more than doubled in the 16 years since deregulation, thereby providing ample traffic for the original airlines to grow while leaving enough for a number of startup carriers to achieve viable traffic levels.

Language

  • English

Media Info

  • Pagination: p. 209-225

Subject/Index Terms

Filing Info

  • Accession Number: 00726825
  • Record Type: Publication
  • Report/Paper Numbers: Volume 1
  • Files: TRIS
  • Created Date: Oct 10 1996 12:00AM