Considerations supporting increased governmental regulation are based on the possibilities of the industry growing beyond the reach of many if left to be controlled by the market forces. Regulating the industry cushions the consumer against the increase in rates which might impact the economy in terms of reduction in businesses due to the high costs of travel and as well as the reduction in the tourism sector which generates revenue and as well attract more investors.
Regulation would ensure that reasonable rates are set for the consumer. When regulated certain standards are set by the government which protects the consumer as well as the ecosystem so that the activities of the airline company do not endanger the lives of the citizens in terms of pollution among other environmental hazards that they might cause.
There are however several arguments in support for deregulating industry, it is argued that by being deregulated the industry has become competitive which has been good for business purposes as competition among the new entrants and the old airline companies drive down the rates. Deregulation has led to growth in air travel where it has attracted many investors whereby the world has been interconnected making air travel the most efficient which has increased international business between different economies. Deregulation...
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