Question

Briefly review the history of government economic regulation of airlines worldwide. What effect has liberalization had on prices and quantity of airline travel?

Answer 1

Ans

Before the worldwide liberalization of travel there was very less chances of interaction between countries after the evolution of the regulation act in travel and Airways help the people to travel from one country to another country.

Deregulation is the process of removing or reducing state regulations, typically in the economic sphere. It is the repeal of governmental regulation of the economy it was the.way of increasing the travelling of one country to another country and it become easy for trade and business and other purpose it was helpful and less time consuming travel on airoplane instead of ships.

Invented deregulation act Franklin D. Roosevelt's administration enacted many forms of financial regulation, including the Securities Exchange Acts of 1933 and 1934 and the U.S. Banking Act of 1933, otherwise known as the Glass-Steagall Act.

Air travel has dramatically increased and prices have fallen. After deregulation, airlines reconfigured their routes and equipment, making possible improvements in capacity utilization. These efficiency effects democratized air travel, making it more accessible to the general public.

Deregulation resulted incompetition, more efficiency, lower costs, and lower prices to consumers. But in attaining these goals, thousands of companies were forced out of business resulting in lower wages, and the creation of oligopolies through mergers and acquisitions.

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