U.S. Regulation of the Airline Industry

The airline sector is among our economy's most important industries. It is a critical part of our nation's and the international transportation infrastructure. From a legal and regulatory perspective, the industry provides a fascinating case study regarding the tension between the desire to open markets to greater competition and the need to regulate to ensure safety, protect consumers, and prevent antitrust violations. In the 1980s, Congress deregulated the domestic airline industry, yet today the industry is highly regulated. On the international side, the U.S. has led a global trend toward opening markets, but controversies persist regarding whether a few international airline alliances have become too dominant and whether some of their state-owned competitors enjoy unfair subsidies that distort competition.  

In this course, Cozen O'Connor Aviation Practice Co-Chair David Heffernan will address these issues, while providing an informational and analytical framework for understanding how the industry is regulated by Congress and the executive branch and how that regulation has affected competition in different ways in domestic and international markets. Finally, the presenter will examine how airline regulation is changing under the Trump administration.

Learning Objectives:

1. Address the fundamentals of regulation of the U.S. airline industry, including the role and authority of key federal agencies
2. Identify how Congress oversees the U.S. airline industry
3. Discuss the U.S. airline industry's market structure and competition
4. Examine the development of international airline alliances, including their exemption from U.S. antitrust laws
5. Analyze the ongoing dispute between U.S. airlines and airlines from the Gulf states relating to subsidization
6. Consider how airline regulation is changing under the Trump administration