Airline Deregulation Fallout by Janet Keck, University Publications Touted as a boon to the flying public, deregulation of the domestic airline industry introduced an era of competition and gave rise to great expectations of lower air fares and improved service. Yet there are nagging doubts. The consumer often pays more to fly, especially during peak seasons and on short hauls.
Fares vary from one date to the next on the same route.
Some fares are lower than those in 1978, others are double or more. And if consum ers want better service, they must pay extra for that option. It was found that the airlines did not effectively ma intain low fares. It was thought that if the airline industry was thrown open to competition, all factors would be considered, fares would decrease to the benefit of the public and the greater health of the industry. In 1978 deregulation became a reality.