This Day Airline Deregulation (Some Sunday Context)
Feb 2, 2025
Joining the discussion is Ganesh Sitaraman, a law professor at Vanderbilt University and author of 'Why Flying is Miserable...And How to Fix It.' He dives into the transformative impact of the 1978 Airline Deregulation Act, highlighting how it made flying more affordable yet led to significant drops in service quality and safety standards. Listeners learn about fierce competition among airlines and recent calls for tighter regulations amidst ongoing industry challenges. Ganesh’s insights offer a compelling look at the complexities of regulation versus consumer experience in air travel.
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Episode notes
Holiday Travel 1978
- In 1978, holiday travel was under a different regulatory system.
- The Airline Deregulation Act of 1978 changed air travel significantly.
Regulated Competition
- The 1930s regulatory system aimed for a balance in airline competition.
- This "Goldilocks" strategy prevented monopolies and ensured nationwide service.
Airline Service Pre-Deregulation
- Airlines competed on service, offering amenities like piano bars and free alcohol.
- This was because ticket prices were regulated, encouraging service-based competition.