| What kind of measures makes an airline flight | | | | without amenities such as movies and alcoholic |
| possible at a reasonable cost? During the | | | | drinks. The economy class traveler was content |
| beginnings of the flight industry, airline flight was | | | | to arrive at his or her flight destination promptly |
| very expensive and very much limited to business | | | | and safely. |
| travel but deregulation and various changes | | | | Lowering Expenses in Air Travel |
| resulted in dramatic change. | | | | The amenities and luxuries of first-class and |
| Deregulation of the United States airline industry in | | | | business class travel were an expense that could |
| 1978 made competition between airlines possible | | | | be eliminated in accommodating this customer. |
| and revolutionized the flight industry. Before | | | | The priority of such flights was to maintain the |
| deregulation was adopted, the airline industry had | | | | safety and security of travel at a minimum |
| little or no competition and uniformity was the | | | | expense. |
| norm. | | | | Cheaper air travel was made possible by |
| New Airline and Lower Prices | | | | deregulation and the ingenuity of the low-cost |
| Cheap flights were impossible because price | | | | airline companies. The resultant cheap flights |
| variations were not allowed; prices were regulated | | | | afforded the opportunity of air travel to a new |
| and uniform. The routes that different airlines flew | | | | market. |
| were also regulated and limited. True competition | | | | Cost-cutting and Cheap Flights |
| didn't develop until deregulation became the new | | | | The bargain-price airlines employed a combination |
| policy. | | | | of cost-cutting strategies to make affordable |
| Once the restrictions on price and routes were | | | | airline ticketing possible. One of the strategies was |
| removed some new airlines attempted to earn a | | | | to provide only one seating class - economy class. |
| place in the flight industry. These new airlines and | | | | The extra cost and expense of special seating |
| their innovations proved very effective and | | | | and arrangements for first-class and business |
| earned rapid success. | | | | class seating were eliminated. The elimination of |
| Cheap Flights - Economy Class Only | | | | this special seating helped to lower airline operating |
| The new low-cost airlines made a dramatic move. | | | | costs. |
| They eliminated the first-class seating and | | | | Direct Flights |
| business class seating in many planes and served | | | | While the cost per passenger was reduced by |
| only one class - economy class. This customer | | | | cheaper flights, the low-cost airlines compensated |
| had been largely ignored. | | | | for lower cost by increasing the number of |
| Lower airfares and cheap flights, however, made | | | | passengers. With cheap flights but more |
| attracting the economy-class a necessity to the | | | | passengers, the airlines could still make a profit. |
| newly developing flight industry. The low-cost | | | | Also direct flight between airports eliminated |
| airlines quickly developed a consumer base and | | | | baggage transfers between flights and led to |
| began to compete with the more traditional | | | | lower operating costs. With direct flights the |
| airlines. | | | | "turn-around" time was also quicker. Planes could |
| Airfare Decreases | | | | quickly turn-around and return with a new load of |
| As the new airlines attracted more customers, | | | | passengers. |
| the older airlines took notice. If these companies | | | | Low-cost Airlines Compete |
| did not adapt and try to attract new customers | | | | The low-cost airlines attracted enough new |
| they would soon falter and be overtaken by the | | | | customers to become very competitive in the |
| new low-cost airlines. | | | | airline industry. Eventually, the bargain-priced |
| The cheap flights attracted an economy-class | | | | airlines drew so many customers that the rest of |
| traveler that had, until deregulation changed the | | | | the industry responded with similar pricing. |
| industry, been largely ignored. The success of the | | | | Cheap flights had led to the discovery of a new |
| upstart bargain-price airlines brought attention to | | | | market and demand. The new market, once it |
| this new market of customer. | | | | was recognized became the main focus of the |
| Appealing to the Economy-Class Traveler | | | | airlines. |
| The economy class traveler was willing to travel | | | | |