Essay Title: 

Transporation Management

March 21, 2016 | Author: | Posted in aviation, technology

Describe the present day advantages and disadvantages of airline deregulation

The United States Airline Deregulation Act signed into law in October 1978 has been a milestone in the history of commercial aviation . Its major objectives are to remove government control from the airline industry and integrate commercial forces into the market . With new concepts and practices integrated into the system , the Airline Deregulation Act has brought about changes and effects that are either advantageous or disadvantageous and are herewith described and discussed . The present day advantages of air deregulation include the [banner_entry_middle]

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1 . Passengers enjoy low airfare and affordable air travel

Deregulating commercial aviation resulted to lower airfares . The price drop among airline companies may be considered as one of the most important advantages brought about by deregulation . This is also contented by deregulation proponents and supporters to be one of the best reasons why the industry should not be regulated . The rate of airfares traditionally dictated and controlled by the government through the Civil Aeronautics Board (CAB ) is now in the hands of entities such as investors and airline companies participating in the airline market Airline companies competed with each other by dropping market prices so as to lure passengers to avail their services . They also offered discounts and other benefits to make their services attractive to the passengers . Hence , deregulation commenced price drop among carriers

As such , passengers and travelers became the ultimate winners of the deregulation as they are the ones who benefited the most . The airline companies did not only drop market prices , they also introduced such other promotions as mileage programs , travel packages and frequent flyer programs . Airline companies competed in a no holds-barred competition for passengers to avail their services focusing much on diminishing what used to be expensive airfares thereby resulting price drops that benefited the airline customers

Describe the present day advantages and disadvantages of Airline deregulation page _2

These travel incentives and cheap airfares indeed enticed customers to avail of air travel . Before deregulation , when there was a fixed price of airfare that has to be maintained , air travel can only be afforded by a few and mostly by affluent people . Air travel then was unaffordable because of its prices that are controlled and monitored by the government . Today , many Americans engage in travel and vacation . The market now has a demand for cheap airfares that makes flying among not so affluent ‘ passengers more affordable and more enjoyable . Nowadays passengers are paying for airfares that just keep falling thereby giving passengers more options on what mode of transportation to avail during travels . As such , opting for a faster travel means taking passenger airlines . Deregulation has therefore given more Americans more travel choices with airfares that are lower than they should

2 . Deregulation has the ability to boost travel and tourism

Commercial aviation does not only benefit the transportation industry The boom in air travel also means a boom in travel and tourism . The tourism industry has benefited in the price drops… [banner_entry_footer]

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