A Proposal to Prevent the Stranding of Airline Passengers

After surveying industry structure in terms of market conditions and actual practices, this article examines the failure of the air travel industry to provide bargained-for services to passengers. It compares the current regulatory pattern with alternative regulatory proposals and scrutinizes each to determine both the validity of the assumptions upon which they are based and the relative effectiveness of each in achieving desired consumer protection. The purpose of this detailed examination is to make possible the formulation of policy recommendations capable of serving as a basis for regulatory reform