Aviation Competition: Challenges in Enhancing Competition in Dominated Markets

摘要

We appreciate the opportunity to testify on some of the vexing issues of competition in the commercial aviation industry. Extensive research and the experience of millions of Americans underscore the benefits that have flowed to most consumers from the 1978 deregulation of the airline industry, including dramatic reductions in fares and expansion of service. These benefits are largely attributable to increased competition--by the entry of both new airlines into the industry and established airlines into new markets. At the same time, however, airline deregulation has not benefited everyone; some communities particularly small and medium-sized communities in the East and upper Midwest-- have suffered from relatively high airfares and a loss of service due in part to a lack of competition.