Competition and regulation in the airline industry

Abstract

Regulations and deregulation Before deregulation of the airline industry began in 1979, the Civil Aeronautics Board controlled both the routes airlines flew and the ticket prices they charged, with the goal of serving the public interest. With deregulation, any domestically owned airline that was deemed “fit, willing, and able” by the Department of Transportation (DOT) could fly on any domestic route.The primary regulatory role of the DOT changed from approving whether an airline was operating in the public interest to deciding whether an airline was operating in accordance with safety standards and other operating procedures.