Architect of Airline Deregulation Dies at 93

In the 
1970s, ticket prices and routes were government controlled (Image: 
Wikimedia)Alfred E. Kahn, the man who ended government control of the airline industry in the 1970s, passed away yesterday at age 93.

 

As chairman of the Civil Aeronautics Board under President Carter, Kahn recommended that airlines could improve service by competing with each other financially with limited government intervention.

 

With Kahn’s help, Congress passed the Airline Deregulation Act of 1978 which ended government control of routes and ticket prices. Passage of the act later led to the emergence of several low-cost carriers.

 

In a 2005 interview with the Denver Post, Kahn defended deregulation, saying, “Consumers have benefited to the effect of $20 billion a year.” His death was announced on the Website of Cornell University, where he spent most of his career. 

 

Source: Bloomberg

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