Abstract
Purpose. The purpose of this study was to assess the impact of deregulation of the American airline industry on levels of aircraft maintenance, crew training, and passenger service applicable to American flag carriers operating in the Pacific market of the international airline industry during the 1975-1984 time period. Three research questions were investigated in the study. These questions were as follows: (1) Was deregulation of the airline industry in the United States associated with change in the levels of aircraft maintenance observed by American flag carriers operating in the Pacific market in the 1975-1984 time period? (2) Was deregulation of the airline industry in the United States associated with change in the levels of crew training attained by American flag carriers operating in the Pacific market in the 1975-1984 time period? (3) Was deregulation of the airline industry in the United States associated with change in the levels of passenger services provided by American flag carriers operating in the Pacific market in the 1975-1984 time period? Research Methodology. Data were collected from FAA and ICAO reports concerning 16 American flag carriers which operated in the Pacific market for all or part of the 1975-1984 time period. Additional data were collected on seven of these 16 carriers through the administration of a survey questionnaire. Data were analyzed through the application of time-series regression and Pearson product-moment correlation procedures. Findings. It was found that statistically significant changes associated with deregulation occurred with respect to levels of maintenance, crew training, and passenger services. Conclusions. Based on the findings of the research performed for this study, it was concluded that: (1) Airline deregulation in the United States was implemented to too great an extent. While economic goals were pursued through deregulation, care was not taken to insure that safety would remain paramount over profits in the industry. (2) Safety in the American airline industry will likely deteriorate further from 1985 levels, if some degree of control is not reintroduced into the industry by the federal government. Recommendation. Based on the findings and conclusions of this study, it was recommended that actions be taken by the federal government to insure that safety standards are strengthened and enforced in the air transportation industry, even if such actions mean a retreat to some extent from the deregulation of the industry.