Airline Deregulation and Laissez-Faire Mythology / Edition 1

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Airline deregulation is a failure, conclude Professors Dempsey and Goetz. They assault the conventional wisdom in this provocative book, finding that the Airline Deregulation Act of 1978, championed by a profound political movement which also advocated the deregulation of the bus, trucking, rail, and pipeline industries, failed to achieve the promises of its proponents. Only now is the full impact of deregulation being felt. Airline deregulation has resulted in unprecedented industry concentration, miserable service, a deterioration in labor-management relations, a narrower margin of safety, and higher prices for the consumer.

This comprehensive book begins by exploring the strategy, tactics, and egos of the major airline robber barons, including Frank Lorenzo and Carl Icahn. In separate chapters, the strengths, weaknesses, and corporate cultures of each of the major airlines are evaluated. Part Two assesses the political, economic, and social justifications for New Deal regulation of aviation, and its deregulation in the late 1970s. Part Three then addresses the major consequences of deregulation in chapters on concentration, pricing, service, and safety, and Part Four advances a legislative agenda for solving the problems that have emerged. Professors Dempsey and Goetz advocate a middle course of responsible government supervision between the dead hand of regulation of the 1930s and the contemporary evil of market Darwinism. The book will be of particular interest to airline and airport industry executives, government officials, and students and scholars in public policy, economics, business, political science, and transportation.

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Product Details

  • ISBN-13: 9780899306933
  • Publisher: ABC-CLIO, Incorporated
  • Publication date: 9/28/1992
  • Edition description: New Edition
  • Edition number: 1
  • Pages: 392
  • Lexile: 1680L (what's this?)
  • Product dimensions: 6.00 (w) x 9.00 (h) x 1.00 (d)

Meet the Author

PAUL STEPHEN DEMPSEY is Professor of Law and Director of the Transportation Law Program at the University of Denver College of Law. He formerly served as an attorney with the Interstate Commerce Commission and Civil Aeronautics Board.

ANDREW R. GOETZ is Assistant Professor of Geography at the University of Denver. He has published research focusing on the geographic distribution of air transportation services since deregulation.

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Table of Contents

Pt. I An Introduction to the Deregulated Airline Industry
1 Introduction 3
2 Corporate Pirates and Robber Barons in the Cockpit 11
3 The Megacarriers 41
4 American Airlines 53
5 Continental Airlines 65
6 Delta Air Lines 103
7 Eastern Airlines 109
8 Northwest Airlines 119
9 Pan American World Airways 123
10 Trans World Airlines 133
11 United Airlines 141
12 USAir 151
Pt. II Regulation and Deregulation: The Metamorphosis in American Public Policy
13 Origins of Regulation: The Legislative History of The Civil Aeronautics Act of 1938 159
14 The Traditional Regulatory Criteria 167
15 CAB Regulation, 1938-1975: The Congressional Perspective 173
16 The CAB under Alfred Kahn: The Origins of De Facto Deregulation 179
17 The Airline Deregulation Act of 1978 193
18 CAB Implementation of the Airline Deregulation Act 199
19 The Demise of the Civil Aeronautics Board 215
Pt. III The Results of Deregulation
20 Concentration 221
21 Pricing 243
22 Service 265
23 The Economic Effects of Deregulation: The $6-Billion Myth 281
24 Safety 297
25 Airline Survival and Market Darwinism: Dawn of the Global Megacarriers 309
Pt. IV Proposed Solutions: The Proper Relationship between Government and the Market
26 Reregulation: Dare We Speak It? 335
27 Putting the Airlines Back on Course: A Modest Legislative Agenda 343
28 Conclusions 355
Epilogue: Toward a National Deregulation Day 361
Index 365
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