In another matter, a federal agency is quietly proposing new rules and regulations which could drastically turn back the clock on lower airline prices which have allowed more Americans to travel the friendly skies. Incredibly, the proposal would prohibit major airlines from reducing prices, and offering more low-cost discount seating. In other words, if we are to believe the DOT, the fare wars among airlines are not about competing for our business, but rather a ploy to knee-cap small competitors. Anticompetitive predatory pricing is already illegal under the antitrust laws. These laws, as Microsoft is well aware, are enforced by the Department of Justice.
Predatory pricing is a strategy whereby prices are set below costs to drive out competitors.
Afterwards, prices are raised to monopoly levels to maintain an anticompetitive climate. Airline deregulation was advanced with strong bipartisan support under President Jimmy Carter. As a result more Americans are mobile and able to take advantage of airline transportation. In 1978, prior to deregulation, airlines carried 250 million passengers. Up as well.