Monday, June 30, 2008

Would a return to regulation be good for airlines?

Difficult market has industry looking for solutions

June 27 - Atlanta Journal Constitution - No denying it: Combine astronomical jet fuel prices with a weak economy, and the U.S. airline industry faces severe financial challenges.

But does it lose its viability as a market-based enterprise? Some say yes and are calling for a return of regulation. The airline industry has been deregulated since 1978, a move that led to the rise of a number of low-cost carriers, heavy competition, low fares and more choices for consumers.

Deregulation also has made it more difficult for many airlines to survive.

One of the most prominent people calling for re-regulation is former American Airlines Chief Executive Robert Crandall. Read More.

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