[3] Module 5 | Assess the impact of historical developments and regulatory changes on the operational practices and strategies of airlines and airports.

Impact on Airlines – Cont’d

2. Deregulation:

– Positive Impact: Deregulation, especially in the United States, led to increased competition, lower fares, and more route options for passengers. Airlines had to become more customer-focused, adopt cost-efficient practices, and develop innovative pricing strategies.

– Challenges: Intense competition can lead to fare wars and reduced profitability. Some airlines struggled to adapt to the new competitive landscape and faced financial difficulties.