Airline Deregulation: Is It Time to Finish the Job?

From the earliest days of air travel in the United States, the federal government has regulated many aspects of the industry. By the early 1970s, even though the number of passengers had grown exponentially and the airlines had vastly expanded their networks, it was becoming clear that economic regulation was constraining competition and stifling innovation. Passage of the Airline Deregulation Act in 1978 removed the government from the day-to-day operations of the air carriers, and though the transition was challenging for all concerned, most passengers have benefited greatly from more frequent service and lower fares.