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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 ....

Middle of Paper
.... not that city had enough gates for the new carrier, and whether the carrier was able to afford to purchase them. Companies such as Southwest recognized potential for low fares, and began building a niche for themselves by offering low fares with equivalent low levels of service. Southwest's success gave rise to a new generation of low fare airlines, with ValuJet entering the market in the early 1990's. Unfortunately, ValuJet suffered a string of accidents which brought the future of this air carrier into question. ValuJet is a low-priced airline that offe ....

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