USA HISTORY

Detailed explanation-1: -The Airline Deregulation Act of 1978 prohibits states from regulating the price, route or service of an air carrier for the purposes of keeping national commercial air travel competitive. Air carriers that provide air ambulance services are also protected from state regulation of their price, route and service as well.

Detailed explanation-2: -Deregulation is the elimination or removal of government controls over a particular industry or sector. Deregulation opens up the industry to more players and makes it more competitive. Deregulation opens investment opportunities and promotes economic growth.

Detailed explanation-3: -As a result of deregulation, barriers to entry into the airlines industry for a potential new airline decreased significantly, resulting in many new airlines entering the market, thus increasing competition.

Detailed explanation-4: -Air travel has dramatically increased and prices have fallen. After deregulation, airlines reconfigured their routes and equipment, making possible improvements in capacity utilization. These efficiency effects democratized air travel, making it more accessible to the general public.