Describes the economic logic that leads to the deregulation of the U.S. airline industry in 1978 and the subsequent competitive developments. The role of computer reservation systems, airport hubs, route and fleet management strategy raised as unanticipated tactical response. The decision highlights the focus if the prospect of regulation. Rewritten version of the previous case. "Hide
by Anita M. McGahan, Julia Kou Source: Harvard Business School 22 pages. Publication Date: March 15, 1995. Prod. #: 795113-PDF-ENG