ABSTRACT
Back in 1978 few, if any, US airline executives had any realistic conception of how economic freedom was likely to affect their industry. This was hardly surprising
given that the decision-making skiiis up to then required of them would bear little resemblance to those necessary to ensure survival in the competitive 'free for all' they were about to experience for the first time in over forty years. The policies pursued by the CAB had provided carriers with a high degree of protection from competition. Service frequency and in-flight facilities had provided the only scope for competitive rivalry.' All importantly, the need to provide their own protective barriers against competitive threats from existing and potential rivals in a dynamic and often unpredictable business environment, (something that managers working in industries not as tightly regulated would regard in the same vein as breathing) was a totally new phenomenon.
