Impact of Deregulation on Unions
The Airline Deregulation Act of 1978 resulted in many significant changes including social and economic impacts in the aeronautical field. The deregulation vastly impacted the regional or local aviation which currently faces an increased level of competition from other forms of cheap carriers’ flights. According to Cetin and Eryigit (2018), the low-cost airlines established a new aviation era, and this allowed more travelers to get the opportunity to access flight services, boosting the effectiveness of the aeronautical industry. The deregulation act also raised a significant competition between various airlines as well as the local airplanes manufacturing firms, due to the need to advance technology and innovate bigger aircrafts. The deregulation act closely links to the success of the Brazilian airplane manufacturer which is ranked third-largest aircraft manufacture globally (Williams, 2017). Deregulation also curbed the government’s fare and routes regulations and thus enhanced the innovation of new and modern airlines.
The deregulation act also eliminated the Civil Aviation Council’s control authority, and this vastly benefitted the passengers through the airline’s industry market forces. Despite the criticisms made to the deregulation act, the initiative has many significant benefits and has vastly enhanced the quality of the airline services. Other actions such as global (pilot) seniority, alteration in the Railway Labor Act and the National Mediation Board also have a positive impact on the airline industry. As postulated by Kim (2016, these initiatives have made the conflict solving procedures between the passengers and the airline management more effective, encouraging collective bargaining. The action also provides mediation strategies and sets up agreements to ensure that all conflicts arising in the aeronautical industry are handled and resolutions established, and this has vastly improved the quality of the airline services, boosting efficiency.
Cetin, T., & Eryigit, K. Y. (2018). Estimating the Economic Effects of Airline
Deregulation. Journal of Transport Economics and Policy (JTEP), 52(4), 404-
Kim, D. (2016). The Effects of Airline Deregulation: A Comparative Analysis. The East Asian
Journal of Business Management (EAJBM), 6(3), 5-10.
Williams, G. (2017). The airline industry and the impact of deregulation. Routledge.