The 1978 Airline Deregulation Act moderately changed the management of air transport from the political environment to a business environment. The organization involved with the management of air transport and overseeing various operations of airlines such as entrance, departure, costs of the services, as well as the intercarrier contracts, partnership, and traveler matters, was disbanded and ceased existing in the year 1984. The change in the revenue management system in airlines came as a result of stakeholders realizing that politically controlled airlines services was not a viable business idea.
For airlines to realize profits, they have to embrace emerging trends in the airline sector. Airlines management needs to breathe a fresh line of ideas into their business as well as employ critical thinking to compete with the emerging trends in the airline business that is graced with newer technologies and sophisticated consumer needs.
Deregulations pose several benefits for business. The befits are regulation creates an efficient corporate environment, thus reducing the costs of products and services. Companies have more significant opportunities to run their firms as they so wish, and the National Association of Manufacturers claims that regulations cost $2 trillion in recession, and thus companies have to utilize their capital to revive instead of incurring more costs of spending on costs of operations.Also, regulation places companies in a more favorable position to compete with other firms since in the 1980s banks sought regulation to compete with international banking firms. They appealed the congress to formulate regulations that would favor their business operations. Thus, deregulation of a business environment is important.