This paper develops an empirical model of entry to analyze the effect of previous regulation on European airlines? post …, and independent airlines. It is found that the latter enjoy sunk cost advantages but get lower variable profits than the … perceived quality, leading to a situation in which they are less likely to enter a route, but also less likely to exit …

financial losses the industry has suffered. Airline profitability has been decidedly worse since deregulation than before it … results for the airline industry, the industry's financial performance has grown profoundly worse since deregulation …. Washington Post economics editor Hobart Rowen described airline deregulation as a “bankrupt policy”, an appropriate description …