Clinton V. Oster

AIRLINE DEREGULATION : WHAT'S BEHIND THE RECENT LOSSES?

The recent disastrous financial performance of the airline industry is probably thought by many to indicate that deregulation is not workable. But simulations suggest that the current recession and the 1979 fuel price increase are primarily to blame. Deregulation has caused transitional losses for some segments of the industry; but the new freedoms accorded to the airlines probably have helped rather than hurt the profitability of the industry.

Evolution of U.S. Domestic Airline Route Networks Since 1990

This paper examines how the networks of both legacy airlines and low-cost carriers evolved and adjusted to the changing competitive and economic environment between 1990 and 2003. The route networks of Air-Tran, America West, American, Continental, Delta, JetBlue, Northwest, Southwest, United, and US Airways are examined. Several measures of operational characteristics are developed and applied to the principal hubs and other dominant airports of each of these carriers. Particular attention is paid to the strategic use of regional jets operated by affiliated carriers and the extent to which passengers used connecting flights as opposed to direct flights. The analysis focuses on how these airlines adapted their use of hubs and route networks during periods of economic growth and recession and how they adapted to other changes in the competitive environment. The legacy airlines have not backed away from the traditional hub-and-spoke network, nor is there evidence of reduced emphasis on connecting traffic. I...

The Aviation Safety Commission: A Task Force Approach to the Evaluation of Large Technical Systems

In 1986, Congress created an independent presidential commission to study aviation safety and make recommendations to Congress and the president by 18 April 1988. The Aviation Safety Commission was to study a large technical system in a politically charged environment.

Airline Deregulation: The Early Experience

This comprehensive and well-documented volume analyzes the policy-making and codification of the airline deregulation process through the 1960s and 1970s and examines the early effects of deregulation. It offers the industry both an historical perspective and a foundation for projecting future developments.

Aviation safety in the age of liberalization: A Critical Assessment

This chapter analyses the safety record in the era of aviation liberalization. The chapter describes different types of liberalization and how aviation safety performance might be affected. Effects of industry growth, industry structure, and the regulatory environment are discussed. The pre- and post-safety records for specific country and region liberalizations are analysed. Overall, we find improvements in aviation safety following liberalization, especially for scheduled services. The safety record does vary by region and by industry segment. The relatively poor safety record of non-scheduled charter services in both developing regions is identified. The challenge for aviation safety is that an increasing share of fatal accidents involves regions and airlines where little information is available to help understand and improve safety performance.