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Airline deregulation: What's behind the recent losses?


Author Info

  • Jose A. Gomez-Ibanez

    (Associate Professor at the John F. Kennedy School of Government, Harvard University)

  • Clinton V. Oster

    (Assistant Professor at the School of Public and Environmental Affairs, Indiana University)

  • Don H. Pickrell

    (Assistant Professor at the John F. Kennedy School of Government, Harvard University)

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    The recent disastrous financial performance of the airline industry is probably thought by many to indicate that deregulation is not workable. But simulations suggest that the current recession and the 1979 fuel price increase are primarily to blame. Deregulation has caused transitional losses for some segments of the industry; but the new freedoms accorded to the airlines probably have helped rather than hurt the profitability of the industry.

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    Bibliographic Info

    Article provided by John Wiley & Sons, Ltd. in its journal Journal of Policy Analysis and Management.

    Volume (Year): 3 (1983)
    Issue (Month): 1 ()
    Pages: 74-89

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    Handle: RePEc:wly:jpamgt:v:3:y:1983:i:1:p:74-89

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    Cited by:
    1. Zhang, Yahua & Round, David K., 2008. "China's airline deregulation since 1997 and the driving forces behind the 2002 airline consolidations," Journal of Air Transport Management, Elsevier, Elsevier, vol. 14(3), pages 130-142.
    2. Ovtchinnikov, Alexei V., 2010. "Capital structure decisions: Evidence from deregulated industries," Journal of Financial Economics, Elsevier, Elsevier, vol. 95(2), pages 249-274, February.


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