Re-Regulation in the USA?

Member for

19 years 11 months

Posts: 13

Hello,
from some recent news I have heard that some in the USA are calling for re-regulation, since passenger complaints are at record highs; fares have not decreased appreciably, rather, "fortress hubs" have arisen where fares have shot up; service seems to be locked into a downward spiral for the most part.
If I recall correctly the reasoning was that air transport is now a public utility and should be regulated as such.
What would that achieve?
After all, deregulation has spawned Southwest...

Original post

Member for

19 years 11 months

Posts: 79

RE: Re-Regulation in the USA?

Hi,
thanks for telling about Concorde. By the way even I have heard this news. Yesterday I returned from Washington and I was comparing the prices for last year and this time. I came by Northwest and had a terrible experience. The prices were shot up 10% and the quality was terrible.

Kabir

RE: Re-Regulation in the USA?

Southwest made its first route application in 1967, was approved in February 1968 and made its first revenue flight, after legal battles with Continental, Trans-Texas and Braniff on June 18 1971.

The Airline Deregulation Act was passed in October 1978

Member for

19 years 11 months

Posts: 13

RE: Re-Regulation in the USA?

Was it not that Deregulation Act that allowed Southwest to fly beyond Texas for the first time, however, making available its approach to air travel available to more and more of the USA?

RE: Re-Regulation in the USA?

Not specifically!! Prior to leaving Southwest in March 1978, Lamar Muse had put in place a plan to diversify Southwest into the Midwest market with a series of flights based on Chicago Midway. These were to have been applied for in the standard way BEFORE deregulation was passed by Congress.

As it turned out, Muse left and the Board, recognising it would be easier to expand from the Love Field base, waited for deregulation which, by summer 1978, was almost a done deal.

Had deregulation not come about, Southwest would have, sooner or later, been forced to break out of Texas otherwise, by the mid 1980s, it would have been financially weak and a sitting duck for takeover by the Trans Texas corporation.

As it was, it faced competition in Texas only from Muse Air, run by Lamar Muse's son, which they eventually bought out and renamed Transtar - which Trans Texas owned Continental crucified, flogged and hung out to dry in a very short time.