What was the driving force behind deregulation of the airline industry? What kind of shock was happening in the market just prior to deregulation? What would have happened in the industry without deregulation?

The airline industry had been regulated; thus, the Civil Aeronautics Board monitored all operations. As a result, the business worsened as changes in routes and fare due to demand were determined by the board. Therefore, what pushed it to seek deregulation was to maximize profits and the public concern for the sharply rising airline tickets. By the end of 1974, there was an oil price shock where oil prices were significantly high due to the Yom-Kippur war and the Iranian revolution that resulted in oil supply disruptions. On the other hand, if the industry had pushed on without deregulation, the airline industry could not have made any profits. The government would have continued to exercise its power in deciding the schedules and fare for airlines hence damaging and causing the airline industry to crush.