schedules. The new law shook up the industry. Famous old airlines like Pan American, Eastern, and Braniff went

bankrupt and disappeared. Some new airlines like People Express were created—and then vanished.

The greater competition from deregulation reduced airfares by about one-third over the next two decades, saving

consumers billions of dollars a year. The average flight used to take off with just half its seats full; now it is two-

thirds full, which is far more efficient. Airlines have also developed hub-and-spoke systems, where planes all fly into

a central hub city at a certain time and then depart. As a result, one can fly between any of the spoke cities with just

one connection—and there is greater service to more cities than before deregulation. With lower fares and more

service, the number of air passengers doubled from the late 1970s to the start of the 2000s—an increase that, in
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