Extensive research has also been conducted on the impact of deregulation on air safety. Because the estimate of the fare per passenger mile is developed from a statistical sample, it has a sampling error. When full-year data for 1979 and 1994 are compared, fares were 8.5 percent lower at airports serving small communities, 10.9 percent lower at airports serving medium-sized communities, and 8.3 percent lower at airports serving large communities. Regional Differences in Fare Trends Are Caused Largely by the Entry of Low-Cost Airlines and More Competition in the West

Since deregulation, the largest decreases in fares have occurred at airports in the West and Southwest, and the largest increases in fares have occurred at airports in the Southeast and Appalachian region. The Quantity and Safety of Air Service Have Generally Increased, but Trends in Quality Indicators Are Mixed

Overall, the quantity of air service has increased since deregulation at small-, medium-sized, and large-community airports. The Quality of Air Service Has Improved for Large Communities, but Indicators Are Mixed for Small and Medium-Sized Communities

The quality of air service a community receives is generally measured by four variables: the number of (1) departures and available seats, (2) destinations served by nonstop flights, (3) destinations served by one-stop flights and the efficiency of the connecting service, and (4) jet departures compared with the number of turboprop departures. As noted in chapter 1, the overall accident rate for commuters has fallen by over 90 percent since deregulation.
Why GAO Did This Study

Pursuant to a congressional request, GAO examined the deregulation of the airline industry, focusing on: (1) airfares and the quantity, quality, and safety of air service since deregulation.

What GAO Found

GAO noted that: (1) the average fare per passenger mile is 9 percent lower at small-community airports, 11 percent lower at medium-sized airports, and 8 percent lower at large-community airports; (2) the largest increase in fares occurred in the Southeast and Appalachian regions, and the largest decrease occurred in the West and Southwestern regions; (3) this geographic disparity exists because of the intense competition between low-cost, new carriers in the west and dominant, high-maintenance carriers in the Southeast; (4) the overall quantity of air service at airports has increased, but large communities have experienced the largest increase; (5) air service quality is difficult to measure and depends on the number of destinations served by nonstop flights and one-stop connections, and the type of aircraft used; (6) air service quality since deregulation has been mixed largely due to the airlines hub networks and greater use of turboprop aircraft; and (7) the overall accident rate since deregulation has dropped, but there are no statistically significant differences in air safety trends for any of the airport groups.