AIRLINE REGULATION

Airline Regulation

Airline Regulation

Airlines and Limited Government Regulation

The airline industry operates like the veins of the United Kingdom by pumping precious cargo throughout the country.  Most young people don't realize how different the airlines were a few decades ago. The entire industry was regulated by the government. Regulation is usually considered a more socialistic liberal idea that is opposed by conservative capitalists.  Although I personally believe in a government with a small limited roll in our daily lives, I have come to the conclusion that the airline industry is a rare exception that needs to return to regulation which would benefit the airlines and the consumers in numerous ways(Abramovitz, 2005).

In the days of regulation the government had total control of routes, fares, gates and almost anything necessary to operate an airline. It also created many barriers to entry which would prevent any new start up airline. All the government would have to do is not allow them at any airports or not approve of any route application. Economists complained that regulation was inefficient so in 1978 the Airline Deregulation Act was passed allowing the free market to dictate airline prices and schedules (Abramovitz, 2005).

With a few major airlines doing most of the long haul flights many commuter airlines have started business with 100 seat type jets (Morrison, 2005). Within the past few weeks Aloha Airlines joined the ranks and went out of business continuing the downward spiral of the airline industry specifically over the last 10 years. There is also speculation of many more mergers and or bankruptcies to come. Mergers are a sign of these companies being better off working together than separate. That is certainly not the healthy competition the lawmakers of the 60's and 70's envisioned while forming this plan. There has been recent talk of law makers on Capitol Hill revisiting the regulation ...