AIRLINE REGULATION AND SERVICE TO SMALL COMMUNITIES
The role of the U.S. Civil Aeronautics Board in preserving small community airline services has been the subject of much contention among participants in the airline deregulation debate. In this paper we examine the impact of CAB regulation on such services. We find that (1) at most, 49 small communities would lose airline service if domestic airlines were deregulated and (2) service to these 49 communities could be preserved by increasing the marginal subsidies received by the carriers for serving them. Thus society does not need to regulate air transportation merely to preserve such services.
- This paper appeared in Land Economics, Vol. 55, No. 2 (May 1979), pp 253-268
Purdue UniversityInstitute for Research in Behavioral, Ecology and Management Sciences
West Lafayette, IN USA 47907
- Pustay, M W
- Publication Date: 1978-4
- Pagination: 35 p.
- TRT Terms: Deregulation; Federal laws; Local service airlines; Subsidies
- Old TRIS Terms: Federal regulations
- Subject Areas: Aviation; Finance; Law;
- Accession Number: 00195737
- Record Type: Publication
- Files: TRIS
- Created Date: Jul 31 1979 12:00AM