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Airline deregulation: What's behind the recent losses?


  • 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)


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.

Suggested Citation

  • Jose A. Gomez-Ibanez & Clinton V. Oster & Don H. Pickrell, 1983. "Airline deregulation: What's behind the recent losses?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 3(1), pages 74-89.
  • Handle: RePEc:wly:jpamgt:v:3:y:1983:i:1:p:74-89
    DOI: 10.2307/3324006

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    Cited by:

    1. Ovtchinnikov, Alexei V., 2010. "Capital structure decisions: Evidence from deregulated industries," Journal of Financial Economics, Elsevier, vol. 95(2), pages 249-274, February.
    2. 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, vol. 14(3), pages 130-142.

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