De-regulation of Air Transport
The US experience
- Background
- Pre 1978 era
- Economic regulations imposed by CAB
- Routes awarded to airlines as per airline request and level of traffic
- Monopoly on thin routes, upto 3 carriers on major routes
- Prices fixed by CAB on the basis of most efficient operator
- Most international routes allotted to PanAm and TWA
- Covert governmental support for some by contracts for mail & defense
- Airline De-regulation act 1978
- Post 1978 era
- All barriers to market entry removed
- All price fixing rules removed
- CAB gradually closed down, responsibility passed on to DOT & DOJ