Airlines were once like electric utilities: staid, heavily regulated, and respectful of each others’ territories. Since deregulation was passed under the Carter administration, a once cordial club has turned cutthroat, producing a steady supply of upstarts and casualties, with mixed results for flyers.
There is hardly an airline today that has not fallen into bankruptcy at some point since then. Spirit Airlines, which filed for bankruptcy on Nov. 18, is only the latest example. Southwest and Jet Blue also recently announced that they are canceling routes, cutting staff, and reducing costs in an attempt to stem losses.
