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Domestic Aviation: Changes in Airfares, Service, and Safety Since Airline Deregulation

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Report Type Reports and Testimonies
Report Date April 25, 1996
Report No. T-RCED-96-126
Subject
Summary:

The Airline Deregulation Act of 1978 phased out the federal government's control over airfares and services, relying instead on competitive market forces to determine the price, the quantity, and the quality of domestic air service. In an earlier report (GAO/RCED-91-13), GAO indicated that between 1979--the earliest year for which reliable data on fares are available--and 1988, the average fare per passenger mile, adjusted for inflation, fell by nine percent at small-community airports, 10 percent at medium-sized-community airports, and five percent at large-community airports. The largest decreases were at airports in the Southwest, regardless of the community's size. This report (1) updates GAO's analysis of airfare trends and (2) compares changes in the quantity, the quality, and the safety of air service since deregulation at airports serving small, medium-sized, and large communities.

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