From WSJopinion: Justice Stephen Breyer reshaped aviation in America. He has cited his research for the Airline Deregulation Act as among his best and most significant work, writes Michael Derchin.
this summer, has cited his research for the Airline Deregulation Act as among his best and most significant work.
In the early ’70s, Mr. Breyer wondered why PSA could charge low fares while the major carriers regulated by the Civil Aeronautics Board couldn’t. The answer was that it was regulated by California’s Public Utility Commission, not the Civil Aeronautics Board., a co-founder of Southwest Airlines, was so impressed with PSA that he copied its approach in Texas.
The Carter administration argued that the airline industry and its customers would benefit from abolishing price regulation and reducing control over domestic routes. Some economists similarly said that regulation led to inefficiency and higher costs for travelers. President Carter appointed Alfred “Fred” Kahn, a highly regarded scholar of regulation, to lead the early Civil Aeronautics Board deregulation effort.
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