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Quick Glance: Air Travel: Regulation and Competition
- Airlines competed for passengers based on service quality when plane ticket prices were strictly regulated.
- The Civil Aeronautics Board allocated flight routes and regulated prices to ensure competition among airlines.
- Price regulation led to a competition among airlines for the best service quality to attract customers.
- Deregulation of airlines in 1978 resulted in increased competition and price cuts on heavily trafficked routes.
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