Although the United States lifted the flight ban was initially envisaged that the carrier service concepts differentiation and lower prices, market segments, and fleet, and structures can produce the increased number of new competition to encourage traffic , leads, and finally come full circle and it only resulted in a monopoly. There were three distinct stages during its development.
In order traces its origin to 1938 when Congress adopted the Civil Aviation Act. The Civil Aviation Board (CAB), which was formed two years later in 1940, resulting from five members of the Knight controls and authorized methods are subsidized, and tankers agreements, among other tasks approved.
Elizabeth E. Bailey, David R. Graham, Daniel P. Kaplan in his book, "according to the organization, by definition, the rule of the market to regulate it, instead of" lifting a ban on airlines (MIT Press, 1985, p. 96).
It regulates and the atmosphere was, in fact, just to buy another carrier that the airline often had to resort to finding a power track. Delta Air Lines, for example, long stretch between New York and Florida, has been interested in offering the service, constantly moved right cab. But the regulatory agency believed that the country's north-east, small local service carriers often lower traffic, financial loss, and are suffering because of bad weather, your routing system, one needs to return to Florida Road, the possible health Back promote profitable, and in turn given him.
Undaunted, Delta finally get the support of a regional carrier and after April 24, 1972, at the two extremes, but after a short period of time needed to get approval for the merger.
It is already a glimpse of the future for California and Texas could be. Free jurisdiction over domestic air transport, and the carrier state, generally fare airline in offering high frequency and can not exercise the right path, and a standard, no-frills service, half rental organization "trunk" in taxi the airlines were forced to charge both profits and traffic grew steadily.
For example, Los Angeles, San Francisco, operates in the market, and saw the air in California PSA Pacific Southwest Airways 1960-3200000 1.5 million in annual passenger traffic growth rates in 1965, Southwest Airlines similarly low prices served Dallas and Houston, Texas-based Texas and among other points. These lines have shown that the average passenger revenue for the liberalization of the real price will be affordable, offer more options and airline service concept and stimulate traffic.
Passengers and the government sharply criticized equally held during the mid-1970s, for example, as clear evidence that the benefits of liberalization can produce mutual airline- passenger within California, PSA, Southwest, and other citing the plane defined by the wind. That was, at least in theory.
, The ultimate mind and democratic governance, the need to accept President Jimmy Carter October 28, 1978 signed into law the lifting of flight restrictions in the process of destroying the cab and go out to the street from the entrance to the approval and most of the current fare restrictions to lack. Even those that eventually the Civil Aviation Council, the now famous "Sunset", and in the end can be dissolved in 1985.
Time the incident occurred, appointed a ten tankers "trunk" collectively domestic revenue passenger miles (RPMs) in comparison to 87.2 percent, while the 12 regionals .258 passengers and five complementary, to provide balance in four intrastates distribution RPM control . That still roam the skies when the dust settled on the lifting of the ban?
II. Lifting restrictions
The first stage: the new generation airlines:
Airline in the country such as California and Texas, the growing number of non-traditional companies, in the US market in early lifting of the ban can be lifted by infiltration. The first of these, in the middle of the road carriers, before the ban Aviation Act and the first to open in 1979 after the approval of the service actually to obtain a certificate was.
Irwing Tague, established three years ago by the former executive director Hughes Airwest, airport service in November of that year, the high-frequency, low-road price, no frills "Rainbow Gate" opened in the middle of the road between Chicago and unused O'Hare was a day in the city built the airport and the road in the same way as it was to revive love in southwest Dallas between expecting - a category five, and 86 passengers former TWA DC-9-10s, initially Cleveland, Detroit and Kansas City. with the rapid development of low-fare structure and increased competition from airlines in the hope of attracting a strategic force to enter the market without the express to Chicago O'Hare is.
But, having already been used in the middle of the street, the writer can attest, it soon three important lessons, which indicated that in order to survive in a competitive market conditions prevailing must be very flexible had learned:
In the Chicago area, he worked as a secondary airport, the first in Chicago and still compete in the market.
Second, once the current airlines have reduced their prices, load factors decreased.
Finally, the high population density, strategic low-fare, which has become the main features of upstarts from the lifting of the ban can be lifted, and when such a business back up and as the needs of a certain segment of the market tried to meet an airline, in terms of increased comfort and service expected effective.
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