The Deregulation Of Domestic Air Service Essay

The Deregulation Of Domestic Air Service Essay

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According to the article there are critics that believe re-regulating the airline industry in the United States is an appropriate measure to take. This would turn back the clock by having the government more involved in the way that airlines operate. Through deregulation, airlines now use market conditions to determine where to fly, when to fly, and how much to charge. Deregulation lowered the barriers to entry and allowed for new airlines to be started and enter the marketplace. With the introduction of low cost carriers, improving competition, created an environment where legacy carrier’s needed to make changes to keep their customers.
May concludes that re-regulating the industry would be a negative to the industry and the travelling public. He writes “the deregulation of domestic air service that began in the late 1970’s has resulted in widespread benefits to U.S. travelers” (May, 2008). The article goes on to discuss the safety achievements made and the annual economic benefits deregulation has produced since implementation in the 1970’s. According to the article “statistics from the National Transportation Safety Board shows that it was 7.5 times safer to fly on a U.S. airline in 2005-07 than in 1970-79” (May, 2008).
The article is written to express the authors belief that regulation of the industry created a non competitive, non consumer friendly business and that attempts to re-regulate the industry would do more harm than good. The author’s conclusion is “widespread inefficiency’s that flourished under regulation have been eliminated, and new initiative such as electronic ticketing, internet sales and loyalty rewarding frequent flier programs have appeared” (May, 2008).
While this article was written in 2008, as a b...

... middle of paper ...

...ill have active defined benefit pension plans” (Hecker, 2006). Understanding the point of view of the critic and there reasons for wanting re-regulation would allow the reader to have a balanced view of both sides of the argument. Going forwards, an expansion of the actual changes made during deregulation, showing the change with the countering improvement or detriment to the all parties involved would provide a clearer picture of the overall success or failure of the topic. Additional information on how deregulation has changed the safety environment would be an added benefit to the overall conclusion of the article. The author clearly outlined successes of deregulation, yet without the counter of the failures or costs of the change, the reader has no opportunity to clearly agree or disagree that the overall impact to the industry and the public has been positive.

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