An Investigation by Michael Sorsky
The Great Airline Experiment
In 1978, the United States made a radical bet — that free markets could run the skies better than government regulators. The Airline Deregulation Act dismantled decades of federal control over fares, routes, and market entry. What followed was one of the most consequential economic experiments in modern history.
fall in average airfares since 1978, adjusted for inflation
About This Site
40 Years of Fascination
Michael Sorsky has been captivated by the US airline industry for over 40 years. His 1993 university dissertation on the 1978 Airline Deregulation Act was his first formal study of the subject — a deep dive into the economics, politics, and consequences of one of the most radical market experiments of the twentieth century. This site is the continuation of that work: a comprehensive, evidence-based investigation into what deregulation has meant for airlines, competition, and the travelling public.
The Story in Three Chapters
What Deregulation Changed
The Price Revolution
Deregulation unleashed fierce competition that drove fares down dramatically — but not equally for all passengers or all routes.
Mergers & Consolidation
From over 40 carriers in 1978 to just four mega-airlines today — the industry consolidated at a pace few predicted.
The Consumer Verdict
More people fly than ever before. But is cheaper always better? The story of service quality, hidden fees, and shrinking seats.
Network Architecture
The Hub & Spoke Revolution
Deregulation didn't just change prices — it reshaped the entire geography of American air travel. Airlines abandoned the old point-to-point model and built vast hub-and-spoke networks, funnelling passengers through fortress hubs like Atlanta, Chicago, and Dallas. It was efficient, profitable — and controversial.
45 Years of Change
Key Milestones
Airline Deregulation Act signed by President Carter
People Express launches — the first true low-cost carrier
Pan Am collapses — a symbol of the old regulated era
9/11 triggers the deepest crisis in aviation history
American–US Airways merger creates the world's largest airline
Four airlines control over 80% of the US domestic market
The Final Question
Has deregulation worked for you?
The evidence is complex, contested, and deeply personal. Explore our full analysis of winners, losers, and the unfinished business of America's great airline experiment.
Major US airlines, 1978 to today