A simple way to increase competition and reduce airfares in the US

In Politics by Michael Rae

The Airline Deregulation Act was signed into law in 1978 and largely eliminated the economic regulation of the domestic U.S. airline industry. A 1969 article in Reason magazine by Reason Foundation’s Robert Poole detailed the strict regulations put forth by the Civil Aeronautics Board, which had established and enforced a “huge cartel” in air travel to the detriment of consumers prior to 1978. Since 1978, thanks to the additional competition enabled by deregulation, average inflation-adjusted airfares have fallen by more than 40%.

However, regulatory barriers to international airline competition remain in place, most notably the prohibition on cabotage—the service of

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