Airline Abuses and Government’s Dormant Regulatory Power

Source: The American Prospect
by Robert Kuttner

“Ever since the Airline Deregulation Act of 1978 collided with the Reagan administration’s evisceration of antitrust enforcement in the 1980s, the airlines have become more and more concentrated, at the expense of consumers. As I reported in this post, airfares have risen a staggering 40 percent in 2022, and only a small fraction of this results from more costly aviation fuel. The failure of deregulation has caused the airlines to oscillate between profitability and bankruptcy. It can be said that the deregulated industry has served none of its stakeholders — not passengers, not employees, not shareholders. Prices have been a crazy quilt of bargains and rip-offs. Mainly, deregulation served the investment bankers and private equity players who kept orchestrating the mergers.” [editor’s note: Note how cheers from libertarians are boos from “progressive” pundits – SAT] (05/10/22)