Airline Deregulation

This testimony is based on information that was developed since Congress phased out the federal government's control over airfares and service and the changes in airfare and service quality since deregulation. GAO specifically discusses changes in airfares and service quality at Buffalo Niagara International Airport.

GAO noted that: (1) most communities in the United States, including Buffalo, New York, have benefited from a decrease in average airfares since 1990; average airfares for passengers travelling to and from Buffalo are lower today than they were in 1990; (2) those average airfares, however, are higher than they were in 1994, particularly for travel to or from cities within 750 miles of Buffalo; (3) by 1998, overall average airfares to and from Buffalo were 27 percent higher than those for comparably sized communities and nearly 29 percent higher than the nation as a whole; (4) since deregulation, the overall quality of air service, as measured by various quantitative (i.e., number of scheduled departures) and qualitative (i.e., availability of jet service) factors has decreased for Buffalo; and (5) for example, from 1978 through 1998, scheduled departures at Buffalo decreased by 11 percent while those at comparably sized communities increased by 83 percent.