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Published at Tuesday, April 02nd, 2019 - 11:09:19 AM. Type of airline. By Adriane Lorenz.

So regulated had the environment been in fact that an airline often had to resort to the purchase of another carrier just to obtain its route authority. Delta Air Lines for example long interested in providing nonstop service between New York and Florida continually petitioned the CAB for the rights. But the regulatory agency felt that Northeast a small local service carrier often plagued by low traffic financial loss and bad weather because of its route system needed the lucrative Florida route s revenue potential to boost it back to health and granted it the authority instead.

Although US airline deregulation was initially envisioned as leading to an increased number of carriers whose divergent service concepts market segments fleets and route structures would have produced new competition stimulated traffic and lowered fares it ultimately came full cycle and only resulted in virtual monopoly. Three distinct stages occurred during its evolution.



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