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Airline Deregulation

This entry focuses primarily on the U.S. airline industry, as actions by the U.S. government in the late 1970s to substantially abolish government regulation over that industry initiated a trend that was embraced in the following decades by many other countries. The subsequent worldwide consequence of these actions by the United States and other international regulatory entities has been a sweeping redefinition and reorganization of the global airline industry.

The U.S. Airline Deregulation Act (ADA) of 1978 initiated an era of fundamental change in that industry. The ADA attempted to address the economic inefficiencies of regulated air carriers by opening up the airline marketplace to competition among both established participants and predicted new entrants. Prior to the passage of the ADA, the U.S. government had used ...

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