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CED-80-143 1 (1980-09-12)

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REPORT BY THE


Comptroller General


OF THE UNITED STATES                              RELEASED

                                    4 FIN



The Changing Airline Industry:

A Status Report Through 1979


The airline passenger industry is changing, re-
sponding to greater freedoms provided by the
Airline Deregulation Act of 1978. GAO's re-
view of airline operations, since deregulation
began through 1979, shows

     --significantly increased traffic,

     --lower rate of increase in fares than in
     airline costs and consumer prices,

     --higher industry rate of return on in-
     vestment,

     --improved productivity,

     --more weekly departures and available
     seats for most areas of the Nation,

     --more small community service to and
     from larger communities but less direct
     service between small communities,
     and

     --no apparent adverse effect on safety.


It is too early to judge airline deregulation's
ultimate success or failure because deregulation
is a gradual process that will not be completed
until 1985.


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       CED-80-143
SEPTEMBER 12, 1980

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