Menu Search Account

LegiStorm

Get LegiStorm App Visit Product Demo Website
» Get LegiStorm App
» Get LegiStorm Pro Free Demo

Transportation: The Changing Airline Industry

  Premium   Download PDF Now (11 pages)
Report Type Reports and Testimonies
Report Date May 24, 1983
Report No. 121424
Subject
Summary:

Testimony was given concerning an upcoming GAO report on the changes which have taken place in the airline industry since the Airline Deregulation Act of 1978. The report compares traffic trends, fares, profits, productivity, service patterns, and air safety before and after deregulation. GAO found that, in the first 2 years following deregulation, the airline industry experienced moderate airfare increases, substantial air passenger travel growth, and broad-based gains in departures, available seats, and flight frequencies. However, from 1980 to 1981, recession, rapidly rising fuel costs, and an air traffic strike led to an erosion of these gains. Due to continuing recession, airline profitability continued to decline in 1982. The industry's rate of return on investment fell to a 7-year low in 1982. Since deregulation, weekly departures and available seats have increased in all but the smallest communities. However, changes in air service patterns have not affected all geographic areas equally.

« Return to search Government Accountability Office reports