Reply #17: deregulation caused long term problems, but it didn't directly cause fares to go up

[onenote]

Indeed, fares were generally significantly higher pre-deregulation -- a fact that has been shown by numerous studies. The problems were that with deregulation, there was overexpansion. Competition, which generally is a good thing, sometimes creates its own problems. Too offset the lowering of prices, airlines cut back on service, making air travel less enjoyable. And now, with fuel prices increasing and an aging workforce entitled to pensions, the airlines, having planned poorly for the future, are in deep doo-doo.

Also, it was deregulation that created the choice of air carriers. When the government was regulating fares and routes, the industry was insulated against competition and getting approval for new carriers and rate fares -- even reduced fares -- was extremely time consuming and difficult. Again, the problem wasn't deregulation per se, it was the industry's inability to control itself once it was freed from regulation. It overspent, overdiscounted, and basically ran itself into the ground.