Deregulation of the Airline Industry
The airline industry has been subject of intense price competition since
it was deregulated, and the result has been a number of new carriers which
specialize in regional service and no-frills operations. These carriers
typically purchase older aircraft and often operate outside the industry-wide
computerized reservations system. In exchange for these inconveniences,
passengers receive low fares relative to the industry as a whole. This research
examines two low fare air carriers, ValuJet and Southwest Airlines. …
