Airline Deregulation and Changes in Aviation

Abstract

The objective of this research paper is to examine the impact of Airline Deregulation on the aviation. This has been observed while emphasizing on major technological changes made in aviation control systems after deregulation in airline industry. The research paper has discussed the effect deregulation have made on aviation by focusing on past empirical studies. The findings of numerous studies have provided the mixed results with regard to Airline Deregulation positive and negative impact on aviation.

Table of Contents

Abstract2

Introduction4

Discussion6

Aviation after Deregulation6

The Hub and Spoke System7

Reservation Systems11

Air Traffic Control12

Conclusion13

Airline Deregulation and Changes in Aviation

Introduction

Airline deregulation is the term which is related with removing governmental imposition on market entry in airline industry and price structure of airline industry. The removal of imposition is often applied to the Airline Deregulation Act of 1978, where different carriers and players are permitted for open competition and choose specific routes for their aviation. The Airline Deregulation Act (1978) was proposed to deal with problems of limited number of aviation available at airports and to accelerate and foster the airline industry. The Airline Deregulation often subject of many controversies in terms of its advantages and disadvantages and more importantly the way it changed the aviation, fares, services, safety and technology. During the time when Deregulation was passed, number of airlines business comes to the fore. Some of them become successful and some of them because of intense competition exit from the market. The focus of this research paper would be to analyze the impact of Airline Deregulation on aviation system and technologies (Clinton, Strong & Zorn, 1992).

The Airline Deregulation in U.S airline industry has resulted in several changes to aviation. The ticket prices dropped drastically by one-third and subsequently more and more people are approaching airline services for commercial aviation. It has been documented that more than 1.6 million people across the United States of America use Airline services every day from 4000 aircrafts from different airline companies. In addition, there is subsequent increase of 25% growth in number of passengers which account 643 million in 1998 as compared to 1993. Moreover, according to the research from FAA (Federal Aviation Administration) of United States of America that there is growing trend of passengers in United States and airline industry will have to have accommodate more than 917 million people across the United States by the year 2014. This has increased the challenges for the airline industry and for the aviation technological systems which are threatened by overwhelm by the increasing number of passengers and intense competitive structure of the industry (Moses & Ian, 1990).

There is growing number of literature who has conducted research on successful changes result after deregulations in the airline industry. With increasing number of players and free competition, the market because high competitive and each airline business try to attract more and more passengers by providing value added services along with reducing the fares of the airline services in the history of American airline ...