ABSTRACT
The United States Airline Deregulation Act of 1978 paved the way for major structural changes in the US airline industry. Airlines were allowed to select their network as well as their fares. This prompted a rush of new startup airlines to the market. After deregulation, the competition was not only between the prederegulation airlines, but also from the new entrants. Airlines were no longer protected, and if they wanted to be profitable, they had to manage their operations more efficiently.
