Worksheet 4.2 U.S. Airlines and Airports 1. What were the effects of the airline deregulation act of 1978 on each of the following?
Airlines- The airlines no longer operated in a protected environment. They were free to establish their own routes and fares and to suffer the consequences. New airlines started and threatened the routes of the old carriers. Some airlines expanded; some merged; some failed. Entrepreneurs tried new ideas.
Travel Counselors- Open competition changed what was once an orderly fare system to a chaotic one that changed frequently. More consumers were driven to travel agencies by confusing fares, and more travel business was generated by lower airfares. Eventually, airlines reduced commissions, putting financial pressure on counselors and their agencies.
Consumers- Schedules and fares changed frequently; often hundreds of fares were available for each route. Discount fares helped air travel become transportation for the masses. Small towns and cities lost air service

2. Name one advantage and one disadvantage of the hub-and-spoke system from the viewpoint of the airlines.
Advantage- Airlines can extend service to a larger number of cities, maximizing passenger loads from smaller cities, and save fuel. Disadvantage- Many flights must arrive at almost the same time and depart at almost the same time, adding to airport congestion. Other answers are possible. 3. Name one advantage and one disadvantage of the hub-and-spoke system for travelers.
Advantage- Passengers can take advantage of service to a larger number of cities. Disadvantage- Answers might include anyone of the following: fewer direct flights, more connections, and an increased risk of delays and of mishandled
Baggage. Other answers are possible.

4. What are some key benefits offered by airline- sponsored members-