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Deregulation Of The Airline Industry

Deregulation Of The Airline Industry

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Title: Deregulation Of The Airline Industry

Essay Details:

Subject: Business

Author: Michelle H

Date: December 8, 2014

Level: University

Grade: A

Length: 6 / 1701

Essay text:

In exchange for these inconveniences, passengers receive low fares relative to the industry as a whole. This research examines two low fare air carriers, ValuJet and Southwest Airlines. By investigating these air carriers, we can better understand the economic impacts of price versus service in the airline industry as a whole, as well as, the impacts on passenger and investor confidence. Until 1978, air transport rates were approved by the government, which meant that price was not a primary competitive factor. Instead, airlines would compete on service and image. The airline industry was dominated by giants (American, United, TWA) which offered nationwide and some international service, and by regional carriers, such as Southwest, which offered short trips between airports not served by the nationals...

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