For nearly 50 years, American consumers have enjoyed the many benefits of airline deregulation. From cheaper fares and more travel destinations to a growing assortment of in-flight service options, air travel is better, safer, and more widely available than ever. Unfortunately, that hasn’t stopped critics from telling a revisionist version of history that alleges that consumers were better off before the passage of the Airline Deregulation Act in 1978. If these revisionists are successful in turning back the clock, the impact on consumers would be very costly.
Five decades ago, the nation’s Civil Aeronautics Board was tasked with such invasive responsibilities as assigning routes for airlines and price setting. Supporters argue this system ensured that all corners of the country were serviced at affordable prices. In addition, they argue that it fostered healthier competition and better customer service than what exists today.
However, little about this narrative is accurate, and returning to such a system would have devastating consequences for American consumers who have benefited enormously from the liberalization of airline regulations.
For starters, air travel is much more accessible today than before deregulation. According to Airlines for America, as recently as 1971, only 49 percent of Americans had ever traveled commercially on a plane, and just 21 percent had done so in the past 12 months. By 2022, 87 percent of Americans had traveled commercially, with nearly half having done so in the past 12 months. This trendline has been steadily ticking upward every year, and there is little reason to think it will stop soon. Today, the Federal Aviation Administration estimates it handles as many as 45,000 flights and 2.9 million passengers every day.
Read the full Real Clear Markets article here.
Nate Scherer is a policy analyst with the American Consumer Institute, a nonprofit education and research organization. For more information about the Institute, visit us at www.TheAmericanConsumer.Org or follow us on X @ConsumerPal.