Deregulation USA: The Victors and the Vanquished

The shakeout effects of airline deregulation in the USA continue apace – but not quite in the way most people expect.

Australian Airlines General Manager, James Strong, complained recently to the National Aviation Press Club that the standard of public debate in Australia on airline deregulation was disappointingly low, with most people expecting it to result in a halving of fares, a doubling of services and benefits to everyone except the established airlines.

Recent events in the USA show that he has a point and that the reality may be very different. Although there are an incredible number of small and highly fare-competitive airlines in the US, their profitability is low and the bankruptcy turnover among them is extremely high – almost as bad as Australian owner-driver truckies, with a new one seemingly always ready to take on a repossessed truck – or jet.

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