Article: Multifactor productivity change in the air transportation industry: productivity increases in the U.S. airline industry--the Nation's primary intercity mass transportation system--have played a significant role in the industry's cost-containment efforts and its ability to accelerate growth.(Airline Productivity Change)

The U.S. air transportation industry is a key component of the U.S. economy. About 42 percent of all passenger trips with roundtrip distances of between 1,000 and 1,999 miles are taken by plane. This percentage increases dramatically to 75 percent if the roundtrip distance is at least 2,000 miles. (1) Advances in technology that led to the development of modern jets, along with the Airline Deregulation Act enacted by Congress in 1978, have allowed the U.S. airline industry to become the primary intercity mass transportation system in this country. The air transportation industry is important to our national economy, but it faces unprecedented challenges. (2) The economic ...

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