The Deregulation of Airline Industry in the United States

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Since the Deregulation Act was signed by President Jimmy Carter in 1978, the industry has experienced commendable improvement in multiple sections (Williams, 2017). Growth and development have been a permanent change in the airline industry. While proponents argue that the industry is better without government regulations, some feel that the Deregulation Act was not all-inclusive enough and argues for re-regulation of the airline industry. This paper argues that the government should resume control of the industry but do so with moderation.

A research done by Williams (2017), shows that consumers today have the freedom to choose their preferred company when traveling. Services offered by airline competitors are significantly improved and offers maximum utility value to its customers. Customers use airline services as a reliable form of transport. Prices charged for commuting are also significantly low compared to earlier before the Deregulation Act. Despite these benefits that resulted from deregulation, it is necessary to re-regulate the airline industry in the United States. Government regulation offers a mechanism for curtailing monopolies and enhancing national security.

However, the government should not resume total regulation of the industry. The Deregulation Act has provided a platform where most citizens benefit from airline services as workers, investors or customers. It is crucial to avoid assuming a state of regulation that gives the government too much control over the industry (Williams, 2017). The proposal for government regulation should provide a platform where it oversees the industry's conduct but allow airline companies to function as independent players in the market. The government should take control of the formation of cartels and the power that such a cartel holds. Ideally, the government should oversee the industry to ensure that stakeholders complete fairly and facilitate the growth of the industry.


Williams, G. (2017). The Airline Industry and the Impact of Deregulation. doi:10.4324/9781315241463

October 24, 2023

Corporations Industry

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