The Impact Of Airline Deregulation On Cities

"For localities, being a hub city has been a mixed blessing. On the one hand, local businesses and other residents have access to more direct flights. However, this is often at the mercy of just one airline, which prices its flights accordingly. Just last week, US Airways — on the edge of bankruptcy like many airlines — was charging $2,033 to fly midweek from Charlotte, one of its hubs, to Los Angeles, even for a ticket bought months in advance. Two hours south, in non-hub Greensboro, US Airways was charging only $558 — even though its L.A.-bound passengers change planes in Charlotte.

But being a non-hub has sometimes been worse. Airlines often established monopolies or duopolies, then cut direct flights and raised fares. In 2000, only two airlines flew from Harrisburg to Boston — I was charged $850 for the trip. Such high prices and limited service cramps the economic development of smaller cities."