Deregulation

Deregulation means removing government controls from an industry to allow more competition and market-driven pricing. In travel, it allows airlines, rail operators, and other service providers to set their routes, schedules, and fares without needing prior government approval.

In aviation, deregulation happened in different regions at different times. In the U.S., the Airline Deregulation Act of 1978 removed federal control over routes and airfares, paving the way for dynamic pricing and low-cost carriers. Europe followed in the 1990s, opening its market to cross-border competition and leading to the rise of budget airlines like Ryanair and easyJet.

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