Historical Perspective Management Essay Research Paper

Impact of Deregulation to the United States’ Airline Industry
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Impact of Deregulation to the United States’ Airline Industry
Although deregulation yielded substantial liberalization of the economy, the transformation affected the airline industry negatively. First, the institution of strict regulations requires massive adjustments at the end of different transitional periods (Smith & Cox, 2019). In this case, the industry cannot keep stable or consistent working schedules since they have to work as per the laid requirements. The monopolies in the industry faced a period of financial and economic crisis after the entry of other firms in the industry (Mattos, 2016). The creation of a competitive market hindered the attainment of higher returns due to the reduction of costs since travelling individuals had various options to choose from in the industry (Smith & Cox, 2019). For instance, the dominant airlines entered a phase of increasing salaries for their workers and layup of some rules after deregulation, an incidence that could not happen in a monopoly market.
The economic health of the i...