Title: EFFECTS OF AIRLINE DEREGULATION ON PROFITABILITY
Abstract: This paper investigates the effect of the Airline Deregulation Act of 1978 on the airline industry's profits. Since regulation diverted carrier rivalry into cost-increasing service competition, deregulation should not affected profits significantly, provided increased carrier efficiency was reflected in sufficiently lower airline fares. Using a two-stage regression model, industry profits were not found to have been affected to any appreciable extent by deregulation.
Publication Year: 1989
Publication Date: 1989-03-01
Language: en
Type: article
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Cited By Count: 4
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