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With the deregulation of the airlines in the U.S. beginning in
1978, barriers to entry were lowered for new entrants. Typically,
a new wave of start-ups would enter during downturns in the normal
8-10 year business cycle. At that time, they find aircraft, financing,
hangar and maintenance services, training all relatively inexpensive,
and laid off staff from other companies eager and willing to take
a job with the new company.
In many ways, the biggest winner in the deregulated environment
was the air passenger. Indeed, the U.S. witnessed an explosive
growth in demand for air travel, as many millions who had never
or rarely flown before became regular fliers, even joining frequent
flyer loyalty programs and receiving free flights and other
benefits from their flying. New services and higher frequencies
meant that business fliers could fly to another city, do business,
and return the same day, for almost any points in the country.
Air travel's advantages put intercity bus lines under pressure,
and most have withered away.
By the 1980's, almost half of the total flying in the world
took place in the U.S., and today the domestic industry operates
over 10,000 daily departures nationwide.
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