An Evaluation of Intrastate Airline Regulation in California

Annette M. La Mond

Bell Journal of Economics, 1976, vol. 7, issue 2, 641-657

Abstract: In September 1965, the California Public Utilities Commission was authorized by California state legislation to extend its control over intrastate airlines to carrier entry, exit, route structure, and service, in addition to its existing power over intrastate carrier fares. Taking September 1965 as a benchmark, the purpose of this paper is to determine whether the broad new powers of the PUC have indeed affected the performance of California intrastate carriers. The existence of one such carrier, Pacific Southwest Airlines, has spanned both the essentially unregulated period from 1949-1965 and the regulated years from 1966 to the present. This study focuses on the operations of PSA -- its fares, service, market share, and profitability -- in reference to its various competitors, both intrastate and CAB-certified carriers.

Date: 1976
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