Deregulation of the U.S. Airline Industry

Due to deregulation in the US aviation industry, ticket prices dropped one-third, based on inflation adjustments. As a result, about 6 million people use 4,000 aircraft a day. In 1998, the airline carried 643 million passengers, an increase of 25% compared with 1993. The growth of air travel may overwhelm the current air deficit air traffic control system that has not kept pace with existing technologies in navigation, communications and flight surveillance.

Comparison of the US aviation industry before and after deregulation also provides clear evidence of the impact of regulation on productivity and production costs. Cost per unit of service was reduced by about 25% and significant staff reductions were made without affecting deregulation for the first few years (Caves, 9 in the telecommunications field in the United States, 9, Long distance telephone fee has been reduced by more than 70% since 1996 since 1996 (Taylor and Taylor, 1993; Wall Street Journal, 1991) In the case of US mobile phones and voice messages, in the latter half of the 1940s, The concept was adopted. It was discussed and became clearly available in 1973, but only in 1983, the FCC began using non-market mechanisms to issue licenses.

In 1978, the aviation industry was deregulated and opened to perfect competition. With deregulation, the price of air tickets cheap and dozens of new airlines can enter the industry. But in only 30 years, the American aviation industry, once jealous of the world, is in danger of failure now. Maintaining unsustainable low competition for fares prevents airlines from ignoring customer service and purchasing newer and more fuel efficient aircraft. AirAsia has a solid position in the Asian market. Currently, Asia's low-cost carrier market is very competitive. In order to maintain a stronger position in the market, AirAsia has to adopt a combination of market penetration and market development strategy. As we all know, AirAsia has a strong management team that will make these strategies successful.