The continuing vigil - Maintaining competition in deregulated airline markets

The authors present the main findings and recommendations from a recent rep ort by the US National Research Council's Transportation Research Board (TR B) on the status of competition in the US airline industry. The Congression ally requested study, conducted by an Ii-member expert committee, was promp ted by concerns over alleged unfair exclusionary, or predatory, conduct in the US airline industry and a subsequent proposal by the US Department of T ransportation to use regulatory-like procedures to detect and prohibit susp ect behaviour. Although committee members differed in their views on DOT's enforcement role, they unanimously urged aviation policymakers to take more positive steps to foster competition and entry in airline markets, includi ng the introduction of market-oriented methods for providing and regulating the use of airport and airway capacity and to undertake more thorough revi ews of proposed airline alliances and other partnerships.