America’s air transport system is vital to the economic health
of the nation, and to the well-being of every region of the
country. Yet across much of America, the air transport system is
breaking down as the few surviving airlines simultaneously jack
up fares and slash service. This means citizens can’t get where
they need to go. And it means large and vibrant cities –
including St. Louis, Cincinnati, Pittsburgh, and Memphis – are
having trouble keeping what businesses they have, let alone
attracting new investors. While most observers blame fuel
prices, our research shows that the collapse in service began
long before the recent spike in oil prices, hencewill likely
continue even if oil prices come down. The real culprit is
Congress’s 1978 decision to “deregulate” airline service.
Although the Airline Deregulation Act did initially lead to
lower prices, it is now clear that those prices came at the cost
of older planes, fewer seats, worse service, more disruptions,
lower wages for flight attendants and mech