February 2018 · National edition

Commerce

Airline Deregulation Without the Team Jersey

A Commerce desk reading of airline deregulation, filed 2018-02.

From the file. Written for the paper dated February 2018. Opened in the public stacks July 14, 2026.

The airline industry, once tightly controlled by federal regulations, has undergone a significant transformation since the deregulation of the late 1970s. Yet as we enter 2018, the debate over the merits and drawbacks of this deregulation continues, revealing sharp divides between left and right.

A ground breaking event marked the beginning of construction on a new distribution facility at Defense Logistics Agency Distribution Depot San Joaquin in Tracy,
A ground breaking event marked the beginning of construction on a new distribution facility at Defense Logistics Agency Distribution Depot San Joaquin in Tracy, California, on Sept. 30, 2015. Photo: US Army

Context of Deregulation

In 1978, the Airline Deregulation Act was enacted, fundamentally altering the landscape of commercial air travel. The idea was to foster competition, leading to lower fares and increased service options for consumers. While it succeeded in some respects, the results have not been without controversy. As airlines consolidate, many are questioning whether deregulation has led to the promised benefits or simply created a new set of problems.

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The Left's Critique: A Consumer's Burden

Progressives have often critiqued the airline industry, arguing that deregulation has primarily benefited the airlines rather than the consumers. They point to a rise in fees for checked baggage, seat selection, and other ancillary services as evidence that deregulation has not translated into customer-friendly pricing. Instead of lowering costs for consumers, many airlines have found ways to extract additional revenue from their passengers.

Infostructure of the Port of Long Beach by Don Ramey Logan
Infostructure of the Port of Long Beach by Don Ramey Logan. Photo: Don Ramey Logan via Wikimedia Commons (CC BY-SA 4.0)
"The airlines may have gotten leaner, but passengers are paying for it in more ways than one."

Furthermore, the consolidation of airlines into just a few major players has raised concerns about monopolistic practices. With fewer competitors, the incentive to improve service diminishes. Long delays, cramped seating, and a lack of options in many markets have left consumers feeling trapped, forced to choose between subpar services.

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The Right's Defense: Market Forces at Work

On the other end of the spectrum, conservative voices argue that deregulation has been a success, asserting that market forces should dictate airline operations. They contend that government oversight stifles competition and innovation, leading to less efficient services. The argument posits that the free market has produced a more dynamic airline industry, with new entrants occasionally shaking up the status quo.

"Deregulation has invigorated an industry that was once stagnant under government control."

Proponents of deregulation emphasize the overall growth of the airline industry, showcasing the broader range of routes and services available today compared to the pre-deregulation era. They argue that consumer choice has expanded, and that the market will ultimately self-correct any missteps made by the airlines.

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The Middle Ground: Seeking Solutions

Yet, as with many issues in contemporary America, the truth likely lies somewhere in the middle. The debate over airline deregulation reveals excesses on both sides. While it is easy to dismiss the airlines as greedy corporations, it is equally simplistic to ignore the benefits that competition has brought to the industry.

Instead of choosing sides, a more productive approach would be to focus on evidence-based solutions that address the real concerns of consumers without stifling the competitive spirit that deregulation aimed to cultivate. This means advocating for transparency in pricing, a re-examination of merger policies, and a commitment to improve the overall passenger experience.

A Call for Accountability

The role of government in regulating the airline industry may need to evolve as well. Rather than a return to the heavy-handed regulation of the past, there is a growing call for a regulatory framework that holds airlines accountable for their service levels while still allowing for the flexibility and competition that deregulation introduced.

As we move through 2018, it is imperative that both consumers and policymakers hold airlines accountable for their practices. The industry must be encouraged to innovate and improve, while also ensuring that passengers do not become mere commodities in the pursuit of profit.


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