Revista internacional de innovaciones, pensamientos e ideas avanzadas

Abstracto

Effects of the Airline Deregulation Act on Aeronautical Industry

Bento Mattos and José Alexandre Guerreiro Fregnani

The present work provides a unique and creative overview that illustrates the economic and social impact of the 1978 North American Deregulation Act on the aeronautical industry. The Deregulation has had especially profound impact on regional aviation, which is now facing increasing competition from other types of low-cost carriers in hub feed flights. The Deregulation triggered an immense competition among airlines and among aircraft manufacturers of regional airplanes, which needed to bring technology of bigger airplanes to their products. Airplanes with lower operation costs enabled a new era in aviation, with more passengers and communities gaining access to flight services. The Deregulation Act is deeply related to the success of the Brazilian aircraft manufacturer EMBRAER, the third- largest airplane manufacturer in the world.