An article by Andrew Goetz in The Journal of Transport Geography, March 2002 does a pretty convincing job on US airline deregulation. Among other things, he notes that because of the economics of hub and spoke routing/scheduing, one airline has come to more or less monopolize each regional hub, creating a local monopoly, higher prices. Another issue is perhaps more danger due to the congestion of waves of flights in and out timed to enable tighter connections.
Journal of Transport Geography Volume 10, Issue 1, March 2002, Pages 1-19 112ed3.jpg
Deregulation, competition, and antitrust implications in the US airline industry
Andrew R. Goetz112f41.jpg, <mailto:[EMAIL PROTECTED]>112f55.jpg
Department of Geography and Intermodal Transportation Institute, University of Denver, 2050 E. Iliff Ave., Denver, CO 80208, USA
Abstract: Current problems in the US airline industry such as increasing industry consolidation, fortress hub dominance, predatory behavior, and high fare "pockets of pain" have their roots in the flaws of the theories that supported airline deregulation in 1978. Contrary to pre-deregulation expectations, the industry is characterized by large economies of scale, large barriers to entry, and a lack of contestability in airline markets. These inexorable economic forces are producing increased levels of monopoly and oligopoly control over city-pair markets resulting in a larger share of travelers paying higher fares. Additional mergers and acquisitions will exacerbate the problem. As these trends continue, the US Congress and the US Departments of Transportation and Justice will be under increasing pressure to take serious corrective actions.
At 11:51 AM 19/08/2003 -0400, you wrote:
Speaking of which, anybody know of a good relatively recent article from a progressive perspective about how airline deregulation fared? I've seen a couple of moderates in the last few days who have said, hey deregulation isn't all that bad look at the airlines. My impression is that in the airline industry, prices are down for lucky people like myself who live in DC but not for people who live in my hometown, Syracuse New York, and that travel biplane is a lot more painful than it used to be -- nothing seems to run on time, even when you take into account the new security. But that's only my impression, and I'd be curious what the data say.
Thanks, Anders
> It's as with airline deregulation, when some airlines cut back on maintenance (e.g.?, Alaska Airlines).
Jim
<<inline: 112ed3.jpg>>
<<inline: 112f41.jpg>>
<<inline: 112f55.jpg>>
