Initial effects of US De-regulation

• Routes
  • Existing airlines entered a large number of new markets
  • large carriers abandoned small destinations
• Route Structure
  • Airlines rapidly developed hubs (e.g. TWA at St. Louis)
• New entrants
  • Several no-frills airlines with rock bottom fares entered market
  • Service frequency increased (one B-737 >> two SD-360)
• Air fares
  • Approx. 25% reduction by 1985 due to low cost carriers

Previous slide

Next slide

Back to first slide

View graphic version