I am sure this will not gain many positive reactions but

[Guest1]

back in the 60s, our industry was heavily regulated as to routes , capacity etc. Then things started to change, for the next 35 years we, in the industry, faced possibility of layoffs etc. Today we are reeling from layoffs, cutbacks etc. and look towards recovery. Is it possible that this is the ideal time to look at reality and cut back services to reflect capacity rather than demand? Maybe cutting down city pairs in favour of filling flights? etc etc etc. or even a return to capacity caps, route allocations and with the pending wave of age related retirements, a return to an industry that will some hope of reasonable long term employment. Maybe the unwashed mass seeing "Cheap" should not result in industry chaos?

 

Retrench and survive?

[Moon The Loon]

I think your basic thread title premise is valid. There are too many variables in your question to comment upon.

[Seeker]

The main reason for the regulation of the domestic industry in the 50s, 60s and 70s was to force airlines to provide service to smaller communities. "Yes, we'll let you add another YVR-YYZ flight but only if you provide service to Sudbury."  It was a tool to force an increase in service.

I don't think we need regulation to cut back and reduce capacity - market forces will handle the right-sizing.

International regulation was a whole different thing involving bi-lateral agreements to share routes and go all the way back to the post WW2 period.