Looking Back on Airline Deregulation

PETER C. BRUCE & DAVID TRAYNHAM

Japan and Germany may be able to make better cars, TVs, and cameras than the U.S., but there is still one thing America does better than anyone else—provide air service. A U.S. airline can take you from New York to Atlanta for $80, while it costs $305 to travel from London to Rome (a comparable distance). Part of the difference is due to historically lower operating costs in the U.S., but much of it is due to a difference in regulatory approaches.

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David Traynham

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PETER C. BRUCE & DAVID TRAYNHAM

Japan and Germany may be able to make better cars, TVs, and cameras than the U.S., but there is still one thing America does better than anyone else—provide air service. A U.S. airline can take you from New York to Atlanta for $80, while it costs $305 to travel from London to Rome (a comparable distance). Part of the difference is due to historically lower operating costs in the U.S., but much of it is due to a difference in regulatory approaches.