Airline deregulation is the process of removing government-imposed entry and price restrictions on airlines affecting, in particular, the carriers permitted to serve specific routes. In the United States, the term usually applies to the Airline Deregulation Act of 1978. A new form of regulation has been developed to some extent to deal with problems such as the allocation of the limited number of slots available at airports.
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👉 Airline deregulation in the context of Air Canada
Air Canada is the flag carrier and the largest airline of Canada, by size and passengers carried. Air Canada is headquartered in the borough of Saint-Laurent in the city of Montreal. The airline, founded in 1937, provides scheduled and charter air transport for passengers and cargo to 222 destinations worldwide. It operates major hubs at Montréal–Trudeau, Toronto–Pearson and Vancouver. Air Canada is a founding member of the Star Alliance.
Canada's national airline originated from the Canadian federal government's 1936 creation of Trans-Canada Air Lines (TCA), which began operating its first transcontinental flight routes in 1938. In 1965, TCA was renamed Air Canada following government approval. After the deregulation of the Canadian airline market in the 1980s, the airline was privatized in 1988. On 4 January 2000, Air Canada took over its largest rival, Canadian Airlines. In 2003, the airline filed for bankruptcy protection and in the following year emerged and reorganized under the holding company ACE Aviation Holdings. In 2019, Air Canada flew 51.5 million passengers. In October 2021, the Government of Canada acquired 6.4% of Air Canada in return for financial support to mitigate the impacts from the COVID-19 pandemic.
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Airline deregulation in the context of Ryanair
Ryanair is an Irish ultra low-cost airline multinational group headquartered in Swords, County Dublin, Ireland. The parent company, Ryanair Holdings plc, includes subsidiaries Ryanair DAC, Malta Air, Buzz, Lauda Europe and Ryanair UK. As of 2024, Ryanair is the largest airline in Europe, based on annual passengers, fleet size, and number of flights. Ryanair DAC, the oldest airline of the group, was founded in 1984. Ryanair Holdings was established in 1996 as a holding company for Ryanair with the two companies having the same board of directors and executive officers. In 2019, the transition began from the airline Ryanair and its subsidiaries into separate sister airlines under the holding company. Later in 2019, Malta Air joined Ryanair Holdings.
Ryanair has been characterised by its rapid expansion, a result of the deregulation of the aviation industry in Europe in 1997 and the success of its low-cost business model. The group operates more than 600 planes. Its route network serves over 40 countries in Europe, North Africa (Morocco) and the Middle East (Jordan and Turkey). The primary operational bases are at Dublin, London Stansted and Milan Bergamo airports. Ryanair is Ireland's biggest airline, and in 2016, became the world's largest airline by scheduled international passengers. Almost all aircraft in the group's fleet are Boeing 737s.