Deregulation was expected to result in (1) lower fares at large-community airports, from which many trips are long-distance, and somewhat higher fares at small- and medium-sized-community airports; (2) increased competition from new airlines entering the market; and (3) greater use of turboprop (propeller) aircraft by airlines in place of jets in smaller markets that could not economically support jet service. Our current report on changes in airfares, service, and safety since airline deregulation updated this analysis for the same 112 airports. In contrast to those airports in the West and Southwest that have experienced substantial declines in fares, these airports tend to be dominated by one or two higher-cost airlines. Large Communities Have More and Better Air Service, but the Trends for Small and Medium-Sized Communities Are Mixed

Most communities served by the airports in our sample have more air service today than they did under regulation. Because of the greater use of turboprops, some airports serving small and medium-sized communities have actually had a decrease in the number of available seats even though the number of departures has increased. Measuring the overall changes in air service quality since deregulation is more difficult than measuring the changes in quantity. 4, 1994).
Why GAO Did This Study

GAO discussed changes that have occurred in domestic aviation since the deregulation of the airline industry, focusing on changes in airline fares, service quantity and quality, and safety.

What GAO Found

GAO noted that: (1) increased competition and especially the entry of new airlines has resulted in lower air fares than before deregulation at most airports; (2) fares have risen at some airports, many of which are dominated by one or two airlines; (3) most airports have more and better quality air service, in terms of number of departures and available seats, available now than they did before deregulation, although some airports serving small- and medium-sized communities have experienced decreases in service; and (4) air travel safety has improved since deregulation, and there were no statistically significant differences in air safety rates among airports serving small, medium, or large communities.