The US airline industry has been taken as an in-depth case study. This thought-provoking book chronicles the evolution of the airline industry and explains what lies ahead for airlines across the globe. The authors present compelling evidence on how the paradigm shift that is taking place in the airline industry is linked to the big-bang approach to deregulation.
There are lessons to be learned from the US as Europe and Asia undergo the (airline) deregulation experience from a public policy as well as a corporate perspective. Deregulation and Competition: Lessons from the Airline Industry also addresses the crucial question of what will happen to the airlines that are in turmoil. In addition to the comprehensive analysis of the airline industry's evolution, the authors draw from extant ...
Chapter Five: Pacific Southwest Airlines: The First Large Discount Airline
Pacific Southwest Airlines: The First Large Discount Airline
Pacific Southwest Airlines (PSA) started flying in California in 1949. Being an intra-state airline, PSA was not under the direction of the CAB that regulated the major airlines flying across state lines. Instead, the California Public Utilities Commission (CPUC) regulated PSA, and provided intra-state airlines with more operating freedom. As a result, PSA had much greater leeway than the major airlines in selecting the routes it would fly and in deciding on the fares it would charge. PSA, in fact, charged fares that were often 50 percent less than the major airlines. Before the creation of PSA, customers of the major airlines were primarily business people or very wealthy individuals. ...