In order to address these growing concerns airline deregulation began in the US in 1978. It was, and still is, a part of a sweeping experiment to ultimately reduce ticket prices and entry controls holding sway over new airline hopefuls.

The United States airline industry was deregulated in 1978 with the passage of the Airline Deregulation Act, primarily to increase competition, lower airfares, and improve efficiency. Before 1978, the federal government (via the Civil Aeronautics Board) strictly controlled every aspect of the industry, including which routes an airline could fly, how many seats they could offer, and the exact price of a ticket. This resulted in high costs for consumers and an inefficient system where airlines competed on "luxury" (like steaks and piano bars) rather than price, as they were legally forbidden from undercutting each other. Proponents of deregulation, led by economist Alfred Kahn and supported by President Jimmy Carter, argued that a "free market" approach would allow new "low-cost" airlines to enter the market and force established carriers to become more efficient. The results were dramatic: air travel transitioned from a luxury for the elite to a common mode of transport for the middle class. While deregulation led to the collapse of some legendary brands like Pan Am and TWA, it also paved the way for the "hub-and-spoke" model and the ultra-low-cost carriers we see today, ultimately making flight more accessible to millions of people globally.