Question

HURRY 25 POINTS

What were results of the federal government deregulating the airline industry in 1978, known as the Airline Deregulation Act?
(Select all that apply.)
Consumers gained better (lower) prices for airfare.
Many small airlines were able to penetrate the market.
Many small airlines went out of business.
Large airlines were able to improve productivity.

Answer 1

The Airline Deregulation Act of 1978 had several results, including lower prices for airfare, the penetration of many small airlines into the market, the bankruptcy of some small airlines, and the improvement of productivity for large airlines.

Step-by-step explanation:

The Airline Deregulation Act of 1978 had several results, including:

• Consumers gained better (lower) prices for airfare: The greater competition from deregulation reduced airfares by about one-third over the next two decades, saving consumers billions of dollars a year.
• Many small airlines were able to penetrate the market: Deregulation allowed new small airlines to enter the industry and compete with larger established airlines.
• Many small airlines went out of business: The increased competition also led to the bankruptcy and disappearance of famous old airlines and the failure of some new small airlines.
• Large airlines were able to improve productivity: Deregulation incentivized larger airlines to become more efficient and develop hub-and-spoke systems, leading to increased efficiency and service.