Airline deregulation has had exactly the opposite effect from the one that you indicate, by allowing certain carriers nearly to monopolize some markets.

Data transmission services seemed a panacea, allowing carriers to squeeze extra revenue from existing customers.

The draft regulations, released last fall, read like an airline wish list - allowing big carriers to use their bargaining power.

They went out of their way to not allow carriers to mess with their phone.

Allowing carriers to merge, for example, could improve the industry's financial outlook by reducing competition and giving airlines more pricing power.

But in the last year, New Jersey, California and other states have allowed long-distance carriers into this $12 billion market.

But the Administration shows signs of going a step further, allowing foreign carriers to operate routes within the United States itself.

That reflects the strong demand for air travel that has allowed carriers to raise fares five times this year.

Bids for a new contract were received in March; the winner must allow other carriers to use the network.

The winner will get an exclusive 10-year license, but must allow other carriers to rent access.