Did Passenger Fare Savings Occur After Airline Deregulation?
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This paper questions the generally held belief that there are significant passenger fare savings and
increased passenger traffic growth due to airline deregulation. Unlike previous studies, passengers
and passenger fares are broken into discrete distance intervals and compared to passenger and
fare distributions prior to deregulation. Except for the period immediately before the terrorist
attack in 2001 and continuing through 2005, there are limited, if any, demonstrable domestic system
passenger fare savings. Also in contrast to other papers showing significant passenger fare benefits,
virtually all data for this paper is accessible via the Internet.