Despite the effects of deregulation in airline industry have been discussed by some researchers with its positive outcomes like increased competition, reduced ticket prices and growth in the number of airline passengers (Doganis, 2006; Fu et al., 2010), others have highlighted the negative outcomes such as financial ...

The debate over airline deregulation, sparked primarily by the 1978 Act in the U.S., is a complex mix of economic success and consumer frustration. On the "good" side, deregulation dismantled government control over fares and routes, leading to fierce competition that drastically lowered ticket prices and made air travel accessible to the general public rather than just the elite. It paved the way for the "hub-and-spoke" model and the rise of low-cost carriers like Southwest and Ryanair. However, critics argue it is "bad" because it eventually led to market consolidation, where a few massive airlines dominate, creating an oligopoly. This has resulted in "junk fees" for bags and seats, reduced service to smaller rural airports, and a perceived decline in passenger comfort. In 2026, while the industry is more efficient and provides more flights than ever, travelers often feel the sting of this efficiency through cramped cabins and a lack of the "golden age" service that existed under regulation.