FOR IMMEDIATE RELEASE:  February 8, 1988

        AIR SAFETY IMPROVED BUT DELAYS REMAIN A PROBLEM
   BECAUSE MORE PEOPLE FLYING, SAYS FTC STUDY ON DEREGULATION

  General Aviation Aircraft Cause of Many Near-Collisions and
Delays

     Since deregulation of the airline industry, virtually all
statistics show that air safety has dramatically improved,
according to a Federal Trade Commission staff report released
today.  The study also points out that general aviation aircraft
-- private planes --  are involved in the vast majority of near
mid-air collisions and are significantly more hazardous than
commercial aviation.  Flight delays remain a problem, and a major
cause may be subsidies to general aviation, the study said.
     The Bureau of Economics report looks at the effects of the
Airline Deregulation Act of 1978.  Before the Act passed, the
Civil Aeronautics Board "set ticket prices, discouraged
competition, and restricted entry."  Full deregulation was
accomplished by 1983, and "has indisputedly given us a very
different air transport system" --  fares have dropped about 25
percent, travelers pay discount fares 90 percent of the time, and
the number of departures is up 27 percent, the study says.
     "Deregulation has resulted in a large increase in the number
of persons flying and the number of flights, so it is not
surprising that there has been a concomitant increase in delays
and other congestion-related problems," the study says.
     According to the study, the absolute number of accidents,
fatal accidents, and fatalities on scheduled major airlines
"declined substantially," and "the improvement in accident rates
is even more dramatic."  The improvement in safety may come from
sources other than deregulation, such as improved technology, but
the record "does not indicate that deregulation has had an
adverse effect on the safety of air travel."  The study also
noted that deregulation did not remove any safety rules.
     The study notes that "near-mid-air-collisions" were up from
311 in 1982 to 839 in 1986, but 96 percent of these involved
military or general aviation aircraft, neither of which was
affected by deregulation.  The higher recent numbers of reported
near-collisions "are partially the result of a change in
reporting methods."  The number of near-collisions "could be
substantially lessened by requiring general aviation to adopt
safety rules similar to those governing commercial airlines," the
report says.
     Although general aviation accounts for only a small share of
the passengers served by most major airports, it is responsible
"for a much larger share of total takeoffs and landings,"
according to the study.  General aviation receives significant
subsidies and may contribute to air traffic congestion.
     "General aviation is a powerful special interest group that
imposes burdens on air travelers not fortunate enough to own
their own airplanes," said FTC Chairman Daniel Oliver.
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     One solution to airport congestion and flight delays would
be to make both general and commercial operators "bear the costs
they impose on airports and the Air Traffic Control System."  For
example, a small private plane can land at Washington's National
Airport during peak landing and takeoff periods for $4.  "The
total cost of landing and parking such an aircraft at National is
$14, which is only slightly more than the $7 charge for parking a
car overnight" in the long-term lot, the study notes.  Such fees
are less than the full cost of using the facilities during peak
periods.
     The report suggests that airport operators could sell
landing rights during congested periods at prices that reflect
costs.  An increase in these landing fees will deter some general
aviation and other flights from using congested airports during
peak times, reducing congestion by spreading flights more evenly
during the day.
     Since deregulation, fares have fallen significantly, the
study says.  For example, in 1976, prior to deregulation, only 15
percent of travelers paid discount fares, while by 1987, 90
percent of travelers paid discount fares.
     In addition, flight frequency has increased.  "The total
number of passenger miles flown is up 65 percent since
deregulation, from 183 billion in 1978 to 302 billion in 1986."
     "Given the clear benefits that the American public has
received from the deregulation of passenger airlines, it is
puzzling that deregulation is so controversial," the report
says.  "This does not mean that the public should be unconcerned
about the statistics on near-collisions, delays, or service
problems."  But these problems could be solved on an individual
basis, the study says.  For example, "if the public demands
improvements in some aspects of safety, then safety standards ...
should be modified."
     The study is titled "The Deregulated Airline Industry:  A
Review of the Evidence," and was written by FTC economists
Jonathan D. Ogur, Curtis Wagner, and Michael G. Vita.  It
reflects the views of the authors and is not intended to
represent the position of the FTC or of any individual
Commissioner.
     Copies of the report are available from the FTC's Public
Reference Branch, Room 130, 6th St. and Pennsylvania Ave. N.W.,
Washington, D.C. 20580; 202-326-2222; TTY 202-326-2502.

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MEDIA CONTACT:     Susan Ticknor, Office of Public Affairs,
                   202-326-2181

STAFF CONTACT:     David Scheffman, Bureau of Economics,
                   202-326-3430

(Dereg)