AIRLINE COMPETITION: Barriers to Entry Continue in Some Domestic Markets

摘要

Airline deregulation has led to lower fares and better service for most airtravelers largely because of increased competition spurred by the entry of new airlines into the industry and established airlines into new markets. As reported in 1996 and 1997, however, some airports have not experienced such entry and thus have experienced higher fares and/or less convenient service since deregulation. This testimony summarizes the findings from prior work on these fare and service trends, factors contributing to the problems, and the initiatives by the Department of Transportation (DOT) and others to address these problems.